HomeStreet To Sell $990 Mln Of Multifamily Commercial Real Estate Loans To Bank Of America

(RTTNews) - HomeStreet, Inc. (HMST), Friday announced that its subsidiary HomeStreet Bank has agreed to sell $990 million of multifamily commercial real estate loans to Bank of America Corp. (BAC) on a servicing retained basis.

The loan portfolio will be sold at a price, including the value of the retained servicing, of 92 percent of the principal balance of the loans.

The financial services company intends to use the proceeds to pay down FHLB advances and brokered deposits.

The loan sale is expected to be completed before December 31.

During the pre-market hours, HomeStreet's stock is trading at $10.95, down 0.27 percent on the Nasdaq.