Flagstar Bancorp, Inc. said Wednesday that it lost $30.1 million, or $(.50) per share, during the fourth quarter as mortgage woes took their toll on the Michigan-based bank. The fourth quarter loss compares to net earnings of $6.9 million, $.11 per share, one year earlier. In spite of the loss, the bank continued to see strong growth in origination activity. Fourth quarter 2007 mortgage loan production was $6.7 billion, including $6.5 billion of residential loans; Q4 originations one year earlier equalled $5.4 billion, including $5.1 billion of residential loans. Flagstar's servicing portfolio also continued to grow during the fourth quarter, reaching $32.5 billion versus $26.7 billion at the end of Q3. Delinquencies skyrocketing Non-performing loans -- also known as severe delinquencies, an representing loans 90+ days in arrears -- rose by an eye-opening 55 percent during the fourth quarter, to $197.1 million from $127.5 just one quarter earlier. NPLs represented 2.42 percent of loans held for investment at the end of the year, Flagstar said. Delinquencies under 60 days in arrears rose 10.5 percent during the fourth quarter as well, hitting $130.5 million versus $117.9 million in the third quarter. Allowance for loan losses was ratcheted up to $104 million during Q4, as a result, up from $77.8 million at the end of the third quarter. Flagstar took a $38.3 million loss provision charge against net charge off activity of $12.2 million. Total non-performing assets, including REO, were $316.2 million, an increase of 43 percent between the third and fourth quarter alone. It's worth nothing that current allowance for loan losses stands at just one-third the amount of current NPAs. For more information, visit http://www.flagstar.com. Disclosure: The author held no positions in FBC when this post was originally published.