EXHIBIT 99.1



                                              FOR IMMEDIATE RELEASE

                                              For further information, contact:
                                              Michael W. Carrie
                                              Executive Director, Treasurer,
                                              and CFO
                                              (248) 312-2000


            FLAGSTAR TRUST TO REDEEM ALL OF ITS PREFERRED SECURITIES

TROY, Mich., January 21, 2004 - Flagstar Bancorp (NYSE: FBC), today announced
that it will call all of the 9.50% Cumulative Trust Preferred Securities (NYSE:
FBC-O) on April 30, 2004. The securities will be redeemed at $25.00 per share
plus accrued interest. The securities, which were issued in April 1999, will
first become callable on April 29, 2004.

The contractual interest payment that is due on March 31, 2004 will be paid as
scheduled. Record date for the March 31, 2004 interest payment will be March 15,
2004. Holders of record will receive the scheduled payment of $0.59375 per
share.

On and after April 30, 2004, holders of the 9.50% Cumulative Trust Preferred
Securities will not have any rights as such holders, other than the right to
receive $25.00 per share plus accrued interest through April 30, 2004, upon
surrender of their 9.50% Cumulative Trust Preferred Securities.

Flagstar Trust is a subsidiary of Flagstar Bancorp, the second largest
independent banking institution headquartered in Michigan. Flagstar currently
operates 99 banking centers in Michigan and Indiana, 128 loan origination
offices in twenty five states, and 14 correspondent lending offices across the
United States.

The information contained in this release is not intended as a solicitation to
buy Flagstar Bancorp and is provided for general information. This release
contains certain statements that may constitute "forward-looking statements"
within the meaning of federal securities laws. These forward-looking statements
include statements about Flagstar's beliefs, plans, objectives, goals,
expectations, anticipations, estimates, and intentions, that are subject to
significant risks and uncertainties, and are subject to change based upon
various factors (some of which may be beyond the Company's control). The words
"may," "could," "should," "would," "believe," and similar expressions are
intended to identify forward-looking statements.