Seattle-based HomeStreet, Inc., the parent company of HomeStreet Bank, announced on Tuesday that it had finalized the sale of $990 million in multifamily commercial real estate loans to Bank of America. The sale was completed on a servicing retained basis and represented 92% of the principal balance. The proceeds from this transaction were used to pay down Federal Home Loan Bank borrowings.
According to Mark Mason, chairman, president and CEO of HomeStreet, this deal marks the first step in implementing a new strategic plan that is expected to lead to profitability for both the bank and its parent company by early next year. He also noted that current interest rates played a role in determining pricing for these loans as they are primarily lower yielding with longer durations compared to their overall portfolio.
This move reflects HomeStreet’s commitment towards achieving financial stability and growth through strategic decisions such as this loan sale.
