Flagstar Bancorp of Troy, Mich., added a caveat to the higher full-year forecast it had issued for its mortgage servicing income.
At an investor presentation Wednesday, the thrift company had said it expects to make $97 million to $107 million this year from servicing loans, compared to its previous estimate of $61 million to $71 million. But on Friday, Flagstar cautioned that the estimates reflect only cash flow from the business, and not changes in the market value of servicing rights as a result of interest rate movements.
The company said it does not provide forecasts for the value of servicing rights "due to the inherent volatility of this asset."
By early afternoon Friday, Flagstar's shares had increased 0.2% from Thursday's close, to $4.14 a share.
