Flagstar Bancorp in Troy, Mich., has hired industry veteran Leonard Israel to lead its mortgage division.

The $11.6 billion-asset company on Monday named Israel president of mortgage banking operations. Israel will report to Alessandro DiNello, chief executive.

He will manage all aspects of Flagstar's mortgage business and help expand its correspondent, wholesale and retail sales channels, the company said in a news release.

Israel previously was director of commercial real estate term lending at Sabal Financial Group. He has also previously worked for IndyMac Bank and for Citigroup's CitiMortgage. 

Flagstar is the ninth-largest mortgage originatorin the U.S., and the 17th-largest servicer, according to the company. The Consumer Financial Protection Bureau hit Flagstar with a $37.5 million penalty in September, over allegations that it blocked struggling homeowners from receiving foreclosure relief.

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