HomeStreet Closes Deal To Sell Mortgage Servicing Rights To SunTrust Mortgage

(RTTNews) - HomeStreet, Inc. (HMST), the parent company of HomeStreet Bank, said Monday that HomeStreet Bank has executed and closed a definitive agreement selling a portion of its single family mortgage servicing rights portfolio to SunTrust Mortgage, Inc.

The deal, which closed on June 30, provides for the sale of the rights to service about $3 billion in total unpaid principal balance of single family mortgage loans serviced for Fannie Mae, which represents about 25% 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 about $5.4 million in mortgage servicing income for the quarter ending June 30, HomeStreet said.

The physical transfer of servicing from the Bank to SunTrust is scheduled for October 1, 2014.