FOR MORE INFORMATION CONTACT:
                                                Michael W. Carrie
                                                Executive Vice President / CFO
                                                (248) 312-2000

                                                FOR IMMEDIATE RELEASE


                       FLAGSTAR RESTATES EARNINGS UPWARDS

Troy, Michigan (March 22, 2002) - Flagstar Bancorp, Inc. (NYSE:FBC), the holding
company and parent of Flagstar Bank,  FSB,  today  announced it is restating its
2001 annual  results of  operations  to show an increase in net earnings of $7.7
million,  or $0.39  per share -  diluted,  to $82.9  million,  $4.17 per share -
diluted.  Earlier this year the Company released record annual earnings of $75.2
million, or $3.78 per share - diluted.  The increase relates to adjustments made
to Flagstar's accounting for stock based compensation granted to employees.

As applied, the adjustment also increased equity capital,  $0.6 million, and the
book value of the common stock, $.03 per share, as of December 31, 2001.

As a result, key financial ratios of Flagstar for 2001 also changed:

*    A restated return on average equity of 34.98%,  the highest recorded by any
     publicly-traded savings institution in the nation;

*    A restated return on average assets of 1.31%;

*    A restated operating efficiency ratio of 50.2%.

Flagstar  Bancorp's wholly owned subsidiary,  Flagstar Bank, FSB, which has $6.6
billion in total assets,  is the largest savings  institution  headquartered  in
Michigan.  Flagstar  currently  operates 73 banking centers with $2.4 billion in
retail deposits,  including the Company's  Internet site, which is accessible at
www.flagstar.com.  The Flagstar banking centers are located throughout  southern
Michigan and Indiana. Flagstar also operates 69 loan origination centers located
in seventeen  states and 15  correspondent  lending  offices  located across the
United  States.  Flagstar Bank is one of the largest  originators of residential
mortgage loans in 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.