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HomeStreet Closes on Sale of Multifamily Loans to Bank of America
HomeStreet, Inc., the Seattle-based parent company of HomeStreet Bank, said Tuesday it had closed on the sale to Bank of America, on a servicing retained basis, of $990 million of multifamily commercial real estate loans.
The price, including the value of the retained servicing, represented 92% of the principal balance of the loans. Sale proceeds were used to pay down Federal Home Loan Bank borrowings.
“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,” Mark Mason, HomeStreet chairman, president and CEO, said when the deal was announced last week.
He continued, “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.”
- ◦Sale/Acquisition
