Flagstar reported revenues that beat many expectations due to higher MSR (servicing) income, higher NII, a rep & warranty benefit, and lower expenses. But generally analysts are trimming future earnings for "Flag" and other publicly held residential lenders due to lower mortgage volume forecasts. (Can everyone lower their expenses? We'll see!) Flagstar's gain-on-sale income declined to $46 million from $68 million in 3Q15. Mortgage origination volume fell by 26% to $5.8 billion, down from $7.9 billion in 3Q15. The company reported a GOS margin of 92 bps down from 105 bps in 3Q15 and up from 87 bps in 4Q14. Management attributed some of the weaker earnings in mortgage banking to the new TRID disclosure requirement.