## MAKING HOMEOWNERSHIP OUR BUSINESS 

WE ORIGINATED $56.4 BILLION IN MORTGAGES IN 2003 FROM OUR THREE CHANNELS OF HOME LENDING, DIRECT LENDING AND WHOLESALE LENDING. 

## HOME LENDING 

Our home lending division posted strong returns in 2003, originating $6.1 billion in mortgage loans — an increase of 48.8 percent over 2002 results. As part of our strategy to create a national network of home loan centers, we opened 36 home loan centers last year, versus 23 in 2002, and expanded our presence to 128 locations in 25 states. 

In 2003, we launched a new initiative to support the Flagstar brand and provide our sales force with addi- tional leverage in attracting mortgage customers. Through our Brand Marketing Alliance we work with real estate companies and builders nationally in a mutually beneficial relationship to develop mortgage lend- ing opportunities. 

With our time- and money-saving mortgage technologies and creative marketing tools, we continue to attract top mortgage producers. Ultimately, we anticipate operating home loan centers in all major U.S. metropolitan markets. 

## DIRECT LENDING 

In 2004, we will be dedicating more resources to our direct lending channel, which delivers mortgages and home equity products via the Web and telephone. In 2003, we closed $246 million in mortgages and $46 million in home equity loans through this channel. 

Our direct-to-consumer loans are an efficient way to reach customers looking for quick decisions and easy access to mortgage professionals. Going forward, we see direct lending as a fast-growing segment of our business that we will support with innovative technology and process enhancements. 

