EXHIBIT 99.1


                                    NEWS RELEASE
                                    FOR MORE INFORMATION CONTACT:
                                    Michael W. Carrie
                                    Executive Director and Chief Financial
                                    Officer
                                    (248) 312-2000

                                    FOR IMMEDIATE RELEASE

FLAGSTAR EXPECTS QUARTERLY EARNINGS UP OVER 67%

TROY, Mich. (July 3, 2003) - Flagstar Bancorp (NYSE:FBC) today updated its
guidance for its second quarter earnings that will be released on July 17, 2003,
after the close of business.

In a televised interview this morning with Bloomberg News, President and Chief
Executive Officer, Mark T. Hammond stated that the Company expects to beat the
current consensus quarterly earnings estimate of $0.86 per share, as reported by
First Call.

As a further update on its projected earnings for the second quarter, the
Company announced that it expects earnings on a per-share diluted basis to
exceed $1.10 per share. This is a $0.24, or 28% increase over the First Call
projection. Management cited the strong mortgage refinance activity experienced
during the quarter and the continued growth in the Company's retail banking
operation. Mortgage production totals for the quarter are expected to be a
quarterly record and up nearly 15% over last quarter and the Company has added
nine new banking centers in 2003.

Flagstar Bancorp is the second largest banking institution headquartered in
Michigan. During both 2001 and 2002, Flagstar was the most profitable publicly
traded banking institution in the nation, based on return on equity.

Flagstar Bank currently operates 96 banking centers in Michigan and Indiana, 101
loan origination offices in twenty one states, and 15 correspondent lending
offices located across the United States.

The information contained in this release is not intended as a solicitation
to   buy   Flagstar  Bancorp,  Inc.  stock  and  is  provided  for  general
information.  Additional information about Flagstar may be accessed via the
Internet at http://www.flagstar.com


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