Last week, HomeStreet, Inc. — HomeStreet Bank’s parent company — agreed to sell a $990 million multifamily loan portfolio to Bank of America.
The price that HomeStreet will receive is 92% of the loans’ collective principal balance, the bank said. Reuters reported that the price is approximately $906 million.
The bank’s plan for the proceeds is to fund “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 of the board, president, and chief executive officer, said in prepared remarks. He noted that the pricing reflected current interest rates and that the loans were “primarily lower yielding loans with longer duration than the overall portfolio.”
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