FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Mark One

|    |  |                                                                                         
|--- |  | ----------------------------------------------------------------------------------------
|[X] |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
SECURITIES EXCHANGE ACT OF 1934



| |                                             
| | --------------------------------------------
| | For the quarterly period ended June 30, 2000



| |   
| | --
| | OR

|                                                                                         
|-----------------------------------------------------------------------------------------
|TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
 SECURITIES EXCHANGE ACT OF 1934

Commission File No.: 000-23821

FLAGSTAR CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)

|                                                                        |  |                                                
|----------------------------------------------------------------------- |  | -----------------------------------------------
|Michigan
(State or other jurisdiction of
incorporation or organization) |  | 38-3386801
(I.R.S. Employer
Identification No.)

|                                                                                         |  |                      
|---------------------------------------------------------------------------------------- |  | ---------------------
|2600 Telegraph Road, Bloomfield Hills, Michigan
(Address of principal executive offices) |  | 48302-0953
(Zip Code)

Registrants telephone number, including area code: (248) 338-7700

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past ninety days. Yes X
     No     .

As of August 10, 2000, 1,000,000 shares of the registrants Common
Stock, $1.00 par value, were issued and outstanding and 2,300,000 shares of the
registrants Series A Preferred Shares, $25.00 par value, were issued and
outstanding.



---



PART I.  FINANCIAL INFORMATION

Item 1. Financial Statements

The unaudited condensed financial statements of the Registrant are as follows:

Statement of Financial Condition  June 30, 2000 and December 31, 1999

Statement of Earnings  For the three and six months ended June 30,
2000 and June 30, 1999

Statement of Cash Flows  For the three and six months ended June 30,
2000 and June 30, 1999

Condensed Notes to Financial Statements.

2



---



Flagstar Capital Corporation
Statement of Financial Condition
(in thousands)

|                                                                                                                                       |                                 |                                            |                            |         |          |         |              |         |         |         | 
|-------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------- | ------------------------------------------ | -------------------------- | ------- | -------- | ------- | ------------ | ------- | ------- | ------- | 
|                                                                                                                                       |                                 |                                            |                            |         | June 30, |         | December 31,
|Assets                                                                                                                                 |                                 | 2000                                       |                            | 1999   
|                                                                                                                                       |                                 |                                            |                            |        
|Cash and cash equivalents                                                                                                              |                                 | $                                          | 864                        |         |          | $       | 7,456        |        
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                       | Mortgage loans                  |                                            |                            | 122,722 |          |         |              | 118,505 |        
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                       | Less: allowance for loan losses |                                            |                            | (250    | )        |         |              | (250    | )      
|                                                                                                                                       |                                 |                                            |                            |         |          |         |              |        
|Net mortgage loans                                                                                                                     |                                 |                                            | 122,472                    |         |          |         | 118,255      |        
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Accrued interest receivable                                                                                                            |                                 |                                            | 2,263                      |         |          |         | 1,400        |        
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Other assets                                                                                                                           |                                 |                                            | 4,048                      |         |          |         | 2,611        |        
|                                                                                                                                       |                                 |                                            |                            |         |          |         |              |        
|                                                                                                                                       |                                 | Total assets                               |                            | $       | 129,647  |         |              | $       | 129,722 |        
|                                                                                                                                       |                                 |                                            |                            |         |          |         |              |        
|Liabilities and Stockholders Equity                                                                                                  
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Liabilities                                                                                                                           
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Due to parent                                                                                                                          |                                 | $                                          | 535                        |         |          | $       | 610          |        
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Other liabilities                                                                                                                      |                                 |                                            | 35                         |         |          |         | 35           |        
|                                                                                                                                       |                                 |                                            |                            |         |          |         |              |        
|                                                                                                                                       |                                 |                                            | Total liabilities          |         |          | 570     |              |         |         | 645     | 
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Stockholders
Equity                                                                                                                  
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Series A Preferred Stock
 $25.00 liquidation value,
  2,300,000 shares authorized and issued at
December 31,
  1999 and June 30, 2000 |                                 |                                            | 57,500                     |         |          |         | 57,500       |        
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Common stock  $1.00 par
value, 1,000,000 shares
  authorized and issued at December 31, 1999
and 
  June 30, 2000                     |                                 |                                            | 1,000                      |         |          |         | 1,000        |        
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Additional paid in capital                                                                                                             |                                 |                                            | 70,577                     |         |          |         | 70,577       |        
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|                                                                                                                                      
|Retained earnings                                                                                                                      |                                 |                                            |                           |         |          |         |             |        
|                                                                                                                                       |                                 |                                            |                            |         |          |         |              |        
|                                                                                                                                       |                                 |                                            | Total stockholders equity |         |          | 129,077 |              |         |         | 129,077 | 
|                                                                                                                                       |                                 |                                            |                            |         |          |         |              |        
|                                                                                                                                       |                                 | Total liabilities and stockholders equity |                            | $       | 129,647  |         |              | $       | 129,722 |        
|                                                                                                                                       |                                 |                                            |                            |         |          |         |              |        

The accompanying notes are an integral part of these statements.

3



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Flagstar Capital CorporationStatement of Earnings(in thousands, except per share data)

|                                        |                                       |   |          |       |          |   |             |       |             |   |       |       |  |   |       |       | 
|--------------------------------------- | ------------------------------------- | - | -------- | ----- | -------- | - | ----------- | ----- | ----------- | - | ----- | ----- |  | - | ----- | ----- | 
|                                        |                                       |   | For the  |       | For the  |   | For the six |       | For the six
|                                        |                                       |   | quarter  |       | quarter  |   | months      |       | months     
|                                        |                                       |   | ended    |       | ended    |   | ended       |       | ended      
|                                        |                                       |   | June 30, |       | June 30, |   | June 30,    |       | June 30,   
|                                        |                                       |   | 2000     |       | 1999     |   | 2000        |       | 1999       
|                                        |                                       |   |          |       |          |   |             |       |            
|Income                                 
|                                       
|                                       
|                                       
|                                       
|                                        | Interest on loans                     |   | $        | 1,858 |          |   | $           | 1,731 |             |   | $     | 3,621 |  |   | $     | 3,611 | 
|                                       
|                                       
|                                       
|                                       
|Expenses                               
|                                       
|                                       
|                                       
|                                       
|                                        | Advisory fee expense  paid to parent |   |          | 63    |          |   |             | 63    |             |   |       | 125   |  |   |       | 125   | 
|                                       
|                                       
|                                       
|                                       
|                                        | General and administrative expenses   |   |          | 38    |          |   |             | 42    |             |   |       | 79    |  |   |       | 82    | 
|                                        |                                       |   |          |       |          |   |             |       |             |   |       |       |  |   |       |      
|                                        | Total expenses                        |   |          | 101   |          |   |             | 105   |             |   |       | 204   |  |   |       | 207   | 
|                                        |                                       |   |          |       |          |   |             |       |             |   |       |       |  |   |       |      
|Net earnings                            |                                       | $ | 1,757    |       |          | $ | 1,626       |       |             | $ | 3,417 |       |  | $ | 3,404 |      
|                                        |                                       |   |          |       |          |   |             |       |             |   |       |       |  |   |       |      
|Preferred stock dividends               |                                       | $ | 1,222    |       |          | $ | 1,222       |       |             | $ | 2,444 |       |  | $ | 2,444 |      
|                                        |                                       |   |          |       |          |   |             |       |             |   |       |       |  |   |       |      
|Net earnings available to common shares |                                       | $ | 535      |       |          | $ | 404         |       |             | $ | 973   |       |  |   | 960   |      
|                                        |                                       |   |          |       |          |   |             |       |             |   |       |       |  |   |       |      
|Earnings per common share  basic       |                                       | $ | 0.53     |       |          | $ | 0.40        |       |             | $ | 0.97  |       |  | $ | 0.96  |      
|                                        |                                       |   |          |       |          |   |             |       |             |   |       |       |  |   |       |      
|Earnings per common share  diluted     |                                       | $ | 0.53     |       |          | $ | 0.40        |       |             | $ | 0.97  |       |  | $ | 0.96  |      
|                                        |                                       |   |          |       |          |   |             |       |             |   |       |       |  |   |       |      

The accompanying notes are an integral part of these statements.

4



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Flagstar Capital CorporationStatements of Cash Flows(in thousands)

|                                          |                                                                                                                                                 |                                                 |                                           |       |              |        |              |       |         |        |  
|----------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------- | ----------------------------------------- | ----- | ------------ | ------ | ------------ | ----- | ------- | ------ | -
|                                          |                                                                                                                                                 |                                                 |                                           |       | For the six  |        | For the six 
|                                          |                                                                                                                                                 |                                                 |                                           |       | months ended |        | months ended
|                                          |                                                                                                                                                 |                                                 |                                           |       | June 30,     |        | June 30,    
|                                          |                                                                                                                                                 |                                                 |                                           |       | 2000         |        | 1999        
|                                          |                                                                                                                                                 |                                                 |                                           |       |              |        |             
|Operating Activities                     
|                                         
|                                         
|                                         
|                                         
|                                          | Net earnings                                                                                                                                    |                                                 | $                                         | 3,417 |              |        | $            | 3,404 |        
|                                         
|                                         
|                                         
|                                         
|                                          | Adjustments to reconcile net earnings to net
cash provided by
     Operating activities
     (Increase) decrease in accrued interest receivable |                                                 |                                           | (863  | )            |        |              | 27    |        
|                                         
|                                         
|                                         
|                                         
|                                          |                                                                                                                                                 | Decrease in liabilities                         |                                           |       |             |        |              |       | (1      | )     
|                                          |                                                                                                                                                 |                                                 |                                           |       |              |        |              |      
|                                          |                                                                                                                                                 |                                                 | Net cash provided by operating activities |       |              | 2,554  |              |       |         | 3,430  |  
|                                         
|                                         
|                                         
|                                         
|Investing Activities                     
|                                         
|                                         
|                                         
|                                         
|                                          |                                                                                                                                                 | Purchase of mortgage loans                      |                                           |       | (12,215      | )      |              |       | (25,009 | )     
|                                         
|                                         
|                                         
|                                         
|                                          |                                                                                                                                                 | Principal repayments received on mortgage loans |                                           |       | 6,561        |        |              |       | 23,118  |       
|                                          |                                                                                                                                                 |                                                 |                                           |       |              |        |              |      
|                                          |                                                                                                                                                 |                                                 | Net cash used in investing activities     |       |              | (5,654 | )            |       |         | (1,891 | )
|                                         
|                                         
|                                         
|                                         
|Financing Activities                     
|                                         
|                                         
|                                         
|                                         
|                                          |                                                                                                                                                 | Dividends paid to common stockholders           |                                           |       | (1,048       | )      |              |       | (1,276  | )     
|                                         
|                                         
|                                         
|                                         
|                                          |                                                                                                                                                 | Dividends paid to preferred stockholders        |                                           |       | (2,444       | )      |              |       | (2,444  | )     
|                                          |                                                                                                                                                 |                                                 |                                           |       |              |        |              |      
|                                          |                                                                                                                                                 |                                                 | Net cash used in financing activities     |       |              | (3,492 | )            |       |         | (3,720 | )
|                                          |                                                                                                                                                 |                                                 |                                           |       |              |        |              |      
|Net decrease in cash and cash equivalents |                                                                                                                                                 |                                                 | (6,592                                    | )     |              |        | (2,181       | )    
|                                         
|                                         
|                                         
|                                         
|Beginning cash and cash equivalents       |                                                                                                                                                 |                                                 | 7,456                                     |       |              |        | 6,989        |      
|                                          |                                                                                                                                                 |                                                 |                                           |       |              |        |              |      
|Ending cash and cash equivalents          |                                                                                                                                                 | $                                               | 864                                       |       |              | $      | 4,808        |      
|                                          |                                                                                                                                                 |                                                 |                                           |       |              |        |              |      

The accompanying notes are an integral part of these statements.

5



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Flagstar Capital Corporation
Notes to Consolidated Financial Statements

Note 1  Nature of Business

Flagstar Capital Corporation (the Company) is an operating subsidiary of
Flagstar Bank, FSB (the Bank), a federally chartered stock savings bank
founded in 1987. The primary business of the Company is to acquire, hold, and
manage residential mortgage loans that will generate net earnings that can be
distributed to stockholders. The Company has elected to be treated as a Real
Estate Investment Trust (REIT) for federal tax purposes and must satisfy
various requirements as discussed herein.

Note 3.  Basis of Presentation

The accompanying consolidated unaudited financial statements of the Company have
been prepared in accordance with generally accepted accounting principles for
interim information and in accordance with the instructions to Form 10-Q and
Article 10 of Regulation S-X as promulgated by the Securities and Exchange
Commission. Accordingly, they do not include all the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. All interim amounts are subject to year-end audit, the results of
operations for the interim period herein are not necessarily indicative of the
results that may be expected for the year ending December 31, 2000.

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

The principal business of the Company is to acquire, hold, and manage
residential mortgage loans that will generate net earnings that can be
distributed to stockholders. The Company intends to acquire all its mortgage
loans from the Bank.

Results of Operation

The Company reported net earnings for the quarter ended June 30, 2000 of $1.7
million. Interest income from loans was $1.8 million, which was offset by
$38,000 in administrative expenses and $63,000 in advisory fees. The reported
net earnings for the quarter ended June 30, 1999 were $1.6 million. Interest
income from loans was $1.7 million, which was offset by $38,000 in
administrative expenses and $63,000 in advisory fees during the 1999 period.

The Company reported net earnings of $3.4 million for the six months ended June
30, 2000. Interest income from loans was $3.6 million, which was offset by
$79,000 in administrative expenses and $125,000 in advisory fees. For the six
months ended June 30, 1999, the Company also reported $3.4 in net earnings.
Interest income from loans was $3.6 million, which was offset by $82,000 in
administrative expenses and $125,000 in advisory fees.

The Company reported net earnings per common share of $ 0.53 for the quarter
ended June 30, 2000 and $0.40 for the quarter ended June 30, 1999. For the six
months ended June 30, 2000 and 1999, the Company reported net earnings per
common share of $0.97 and $0.96, respectively.

6



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Results of Operation cont

During the quarters ended June 30, 2000 and 1999, the Company declared and paid
$1,222,000 in preferred stock dividends. For the six months ended June 30, 2000
and 1999, the Company declared and paid $2,444,000 in preferred stock dividends.

The Company declared and paid or accrued common stock distributions of $535,000
and $404,000 for the quarters ended June 30, 2000 and 1999, respectively. For
the six months ended June 30, 2000 and 1999, the Company declared and paid or
accrued common stock distributions of $973,000 and $960,000, respectively.

Mortgage Loans

The Companys residential mortgage loans (Mortgage Loans) consist of
adjustable rate mortgages (ARMs), and fixed rate mortgages (FRMs).
Reinvestments made in Mortgage Loans will be initiated in a manner to maintain
the original composition of approximately 70% ARMs and 30% FRMs. All Mortgage
Loans are expected to be purchased from the Bank.

The following table gives a breakdown of the Mortgage Loans at June 30, 2000.

|              |            |       |     |         |     |         |            |            |             |         |         |          |         |            |       |       |       |   |     |     |     |  |     |     |     |  |      |      |       |  
|------------- | ---------- | ----- | --- | ------- | --- | ------- | ---------- | ---------- | ----------- | ------- | ------- | -------- | ------- | ---------- | ----- | ----- | ----- | - | --- | --- | --- |  | --- | --- | --- |  | ---- | ---- | ----- | -
|              |            |       |     |         |     |         |            | Principal  |             | Average |         | Interest
|Product Type  |            | Loans |     | Balance |     | Balance |            | Rate       |             | WAM     |         | WARM     |         | % of Total
|              |            |       |     |         |     |         |            |            |             |         |         |          |         |           
|              | 3 year ARM |       |     | 140     |     |         | $          | 35,760,000 |             |         | $       | 255,427  |         |            |       | 6.963 | %     |   |     | 360 |     |  |     | 335 |     |  |      | 29.4 |      
|             
|             
|             
|             
|              | 5 year ARM |       |     | 103     |     |         |            | 25,593,000 |             |         |         | 248,480  |         |            |       | 6.861 |       |   |     | 360 |     |  |     | 335 |     |  |      | 21.5 |      
|             
|             
|             
|             
|              | 7 year ARM |       |     | 100     |     |         |            | 23,423,000 |             |         |         | 234,229  |         |            |       | 6.924 |       |   |     | 360 |     |  |     | 336 |     |  |      | 19.3 |      
|             
|             
|             
|             
|15 year Fixed |            |       | 137 |         |     |         | 11,877,000 |            |             |         | 86,693  |          |         |            | 6.501 |       |       |   | 180 |     |     |  | 153 |     |     |  | 9.8  |     
|             
|             
|             
|             
|30 year Fixed |            |       | 190 |         |     |         | 24,927,000 |            |             |         | 131,192 |          |         |            | 6.974 |       |       |   | 360 |     |     |  | 335 |     |     |  | 20.0 |     
|              |            |       |    
|             
|             
|             
|             
|              |            | Total |     |         | 670 |         |            | $          | 121,580,000 |         |         | $        | 181,462 |            |       |       | 6.891 | % |     |     | 342 |  |     |     | 317 |  |      |      | 100.0 | %
|              |            |       |    

7



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Allowance for Loan Losses

The Company had a $250,000 allowance for loan losses at December 31, 1999 and
did not record any additional allowance for the six months ended June 30, 2000.
Management has based the allowance on assessments of relevant factors including
the types and amount of delinquent loans, historical and anticipated loss
experience on such types of loans experienced by the Bank, and current and
projected economic conditions. Management is of the opinion that the allowance
for loan losses is adequate to meet potential losses in the portfolio. The
Company had certain representations and warranties from the Bank that were
related to the performance of the Mortgage Loans. The Companys delinquent loans
were limited to one mortgage loan for $256,689, or 0.21% of the portfolio, which
was 30 days delinquent at December 31, 1999. Delinquent loans at June 30, 2000
consisted of two mortgage loans, one loan for $61,925, or 0.05% of the
portfolio, which was 60 days delinquent and another loan for $244,295, or 0.20%
of the portfolio, which was 30 days delinquent.

The Bank, in its role as Advisor, has implemented internal asset review systems
to provide for early detection of problem assets. Although this system will not
eliminate future losses due to unanticipated declines in the real estate market
or economic downturns, it should provide for timely identification of any losses
created from Mortgage Loans.

|                                              |                                |   |         |   | 
|--------------------------------------------- | ------------------------------ | - | ------- | - | 
|Activity within the Allowance for Loan Losses
|                                             
|Balance, January 1, 2000                      |                                | $ | 250,000 |  
|                                             
|                                             
|                                             
|                                             
|                                              | Provision for loan losses      |   |         |  | 
|                                             
|                                             
|                                             
|                                             
|                                              | Charge-offs, net of recoveries |   |         |  | 
|                                              |                                |   |         |  
|Balance, June 30, 2000                        |                                | $ | 250,000 |  
|                                              |                                |   |         |  

Liquidity

The objective of maintaining liquidity within the Company is to ensure the
availability of sufficient cash flows to meet all of the Companys financial
commitments. In managing liquidity, the Company takes into account various legal
limitations placed on a REIT as discussed below in Other Matters.

The Companys principal liquidity needs are to maintain the current portfolio
size through the acquisition of additional Mortgage Loans as Mortgage Loans
currently in the portfolio mature, or prepay, and to pay dividends on the Series
A Preferred Shares and common stock. The acquisition of additional Mortgage
Loans is intended to be funded with the proceeds obtained from the repayment of
principal balances by individual borrowers.

During May 2000, the Company purchased from the Bank $12.2 million in principal
balance of residential mortgage loans at a purchase price of $12.3 million,
their estimated fair value.

For the quarters ended June 30, 2000 and 1999, the Company received repayments
of principal from mortgage loans totaling approximately $1.8 million and $10.9
million, respectively. For the six months ended June 30, 2000 and 1999, the
Company received principal repayments from mortgage loans totaling approximately
$6.6 million and $23.1 million, respectively.

The Company does not anticipate any material capital expenditures other than for
the acquisition of additional Mortgage Loans.

8



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OTHER MATTERS

As of June 30, 2000, the Company believed that it was in compliance with the
REIT tax rules and that it will continue to qualify as a REIT under the
provision of the Internal Revenue Code (the Code). The Company calculates
that:



| |  | its Qualified REIT Assets, as defined in the Code, are approximately 100% of its total assets, as
compared to the federal tax requirements that at least 75% of its total assets must be Qualified REIT
Assets.
|- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| 
| |  | 100% of its revenues qualify for the 75% source of income test and 100% of its revenues qualify for
the 95% source of income test under the REIT rules.                                                        
| 
| |  | none of the revenue was subject to the 30% income limitation under the REIT rules.                                                                                                                             

The Company also met all REIT requirements regarding the ownership of its common
and preferred stocks and anticipates meeting the 2000 annual distribution and
administrative requirements.

Item 3. Market Risk

The Company considers that its primary business objective is to ensure the
availability of sufficient cash flows to meet the obligations mandated by the
Series A Preferred Shares. In managing its investments, the Company accepts a
certain credit risk posture and assumes some interest rate risk.

Interest rate risk generally refers to the potential volatility in net interest
income resulting from changes in interest rates. The Companys risk occurs when
it must replace amortized principal balances with new Mortgage Loans. These new
Mortgage Loans are chosen in a manner to maintain an interest rate risk posture
similar to the initial portfolio of Mortgage Loans. The Company must monitor the
ratio of fixed costs (the Series A Preferred Shares dividends, advisory fees,
and servicing costs) to the interest income potential of the Mortgage Loans.
When, in managements opinion, the coverage ratio is at risk of being depleted,
the Company must look to its parent company, the Bank, for support or utilize
the investment powers of the Company.

The Company will record higher levels of interest income in a rising interest
rate environment and will experience declining interest income during periods of
falling interest rates. This happens because the Companys assets reprice while
the Series A Preferred Shares have a fixed cost of 8.5%.

At June 30, 2000 the Company had a liquidity coverage ratio (Projected interest
income divided by REIT dividends plus Advisory Fees plus Servicing Fees) of 1.58
versus 1.54 at December 31, 1999 and 1.67 at inception (February 28, 1998).

9



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PART II  OTHER INFORMATION

Item 1. Legal Proceedings



| |      
| | -----
| | None.

Item 2. Changes in Securities



| |      
| | -----
| | None.

Item 3. Defaults upon Senior Securities



| |      
| | -----
| | None.

Item 4. Submission of Matters to a Vote of Security Holders



| |      
| | -----
| | None.

Item 5. Other Information



| |      
| | -----
| | None.

Item 6. Exhibits and Reports on Form 8-K



| |                   
| | ------------------
| | (a)      
Exhibits



| |                                           
| | ------------------------------------------
| | Exhibit 11
      Exhibit 27 (SEC Use only)



| |                             
| | ----------------------------
| | (b)      Reports on Form 8-K



| |     
| | ----
| | None

10



---



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

| |                             
| | ----------------------------
| | FLAGSTAR CAPITAL CORPORATION

|                          |  |  |                                                                                                                     | 
|------------------------- |  |  | ------------------------------------------------------------------------------------------------------------------- | 
|Date:     August 10, 2000 |  |  | /S/ Thomas J. Hammond
Thomas J. Hammond
Chairman of the Board and
Chief Executive Officer
(Duly Authorized Officer)

|
|
|
|
|
|
|

11



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Exhibit Index

|            |  |                                                                                                         
|----------- |  | --------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                             
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|11          |  | Flagstar Capital Corporation
Computation of Net Earnings per Share
(In thousands, except per share data)
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|27          |  | Financial Data Schedule