The Federal Reserve has lifted its Supervisory Agreement with Flagstar Bancorp. The Supervisory Agreement, which began on Jan. 27, 2010, included requirements to submit a capital plan annually and receive a written non-objection from the Fed before paying a dividend or repurchasing stock, incurring or renewing holding company debt or engaging in affiliate transactions.

"This is a major milestone for our company, representing the last major regulatory issue with the old Flagstar," said Alessandro P. DiNello, president and chief executive officer. "This action reflects our successfu

l effort in building a strong financial institution that can deliver solid results within the framework of a strong risk and compliance structure. The lifting of the agreement ushers in a new era for our holding company, providing more flexibility in entering into strategic transactions.

"It's been along road to reach this positive outcome. I would like to personally thank the entire Flagstar team for their dedication and our shareholders for their support. I also appreciate the Fed's collaboration over the past several years to strengthen our company. We are now focused on continuing our journey to build a great company."