HomeStreet Enters Deal To Sell $990 Million In Multi-Family Loans

HomeStreet – the parent company of HomeStreet Bank – today announced today that the Bank entered into an agreement to sell to Bank of America, on a servicing retained basis, $990 million of multifamily commercial real estate loans at a price, including the value of the retained servicing, of 92% of the principal balance of the loans. This loan sale is expected to close before December 31, 2024.

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HomeStreet is a diversified financial services company based in Seattle, Washington, serving consumers and businesses in the Western United States and Hawaii. And the Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. Its principal subsidiary is HomeStreet Bank. 

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“Entering into this agreement and completing the sale of $990 million of multifamily loans is the first step in implementing a new strategic plan which we expect to result in a return to profitability for the Bank and on a consolidated basis early next year. The pricing of the loan sale reflects the current interest rate environment and that the loans being sold are primarily lower yielding loans with longer duration than the overall portfolio. The proceeds from the loan sale will be used to pay down FHLB advances and brokered deposits which carry substantially higher interest rates than our core deposits.”

• Mark Mason, Chairman of the Board, President, and Chief Executive Officer