Consumer Lending

HomeStreet to sell residential mortgages in Pacific Northwest

HomestreetHomeStreet announced on Wednesday that it plans to sell two pools of residential loans in Washington, Oregon, Idaho and Hawaii.

The first pool is a group of fixed-rate residential mortgages with total outstanding principal balances of approximately $105 million, and the second pool is comprised of adjustable rate residential mortgages with total outstanding balances of approximately $222 million.

The sale of the first loan pool is expected to close by the end of the month, and the sale of the second pool of loans is expected to close by the end of April. Sales are subject to a number of contingencies.

HomeStreet CEO Mark K. Mason said the sales are part of the company’s ongoing effort to manage its loan portfolio and balance sheet. The company will, however, retain its right to service the loans.

“These activities are undertaken to manage, among other things, the Company’s credit risk, interest rate risk, liquidity and regulatory capital ratios,” Mason said. “As a part of those activities, from time to time, the Company may buy or sell assets such as securities, loans, mortgage servicing rights or other assets or liabilities such as deposits.”

HomeStreet—the parent company of Seattle’s community-based HomeStreet Bank—is headquartered in Washington. The bank offers consumer and business banking, as well as investment and insurance products and services, in the Pacific Northwest, California and Hawaii.

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