Blue Lion Capital Commends HomeStreet's Board For The Decision To Exit The Mortgage Business

DALLAS, Feb. 15, 2019 /PRNewswire/ -- HomeStreet, Inc. ("HMST") announced this morning in a press release that it has made the decision to sell the majority of its mortgage servicing rights and its mortgage origination business.  Ostensibly, this is the exact same plan that Blue Lion Capital ("Blue Lion") recommended to the Board of Directors ("Board") in December of 2017.  While Blue Lion is disappointed that HMST took more than fifteen months to finally agree with our recommendation, we applaud their efforts to do so.

Without the volatility and complexity of the mortgage segment, Blue Lion Capital continues to believe that HMST can be a leading bank in its markets and realize the value of its franchise.  In addition to freeing up more than $100 million of capital, divesting the mortgage segment will greatly simplify HMST's operations, allow for meaningful cost reductions at the commercial bank and lead to significantly higher returns on capital.

We commend the Board for taking this meaningful first step and look forward to the additional steps that will be required to realize the opportunity available to the bank, its customers and its shareholders.

CONTACT: Blue Lion Capital, 214.855.2430

SOURCE Blue Lion Capital

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