HomeStreet, Inc. has announced that the bank has executed and closed a definitive agreement selling a portion of its single family mortgage servicing rights (MSRs) portfolio to SunTrust Mortgage, Inc. The transaction closed on June 30, 2014 and provides for the sale of the rights to service approximately $3 billion in total unpaid principal balance of single family mortgage loans serviced for Fannie Mae, which represents about 25 percent of HomeStreet’s total single family mortgage loans serviced for others portfolio as of March 31, 2014. The sale is expected to result in an increase of approximately $5.4 million in mortgage servicing income for the quarter ending June 30, 2014.
“The sale of this portfolio of mortgage servicing rights is part of our ongoing balance sheet and capital management as well as in preparation for the Jan. 1, 2015 effective date of the new Basel III-based regulatory capital standards,” said HomeStreet CEO Mark K. Mason.
The physical transfer of servicing from the bank to SunTrust is scheduled for Oct. 1, 2014, and is subject to customary conditions. HomeStreet will continue to service the loans between the closing date and the final transfer date.