Wilbur Ross quits Ocwen Financial

Wilbur Ross quits Ocwen Financial

Distressed asset investor bringing his magic to Bank of Cyprus

Dustin Johnson levels blockbuster claims at title attorneys

Is Nat Hardwick the fall guy?

CFPB proposes 7 big changes to foreclosure process for mortgage servicers

Adds guidance on extended borrower protections
W S
Investments

HomeStreet to sell $3B in MSRs to SunTrust

Preps for Basel III-based regulatory capital standards

money zipper
/ Print / Reprints /
| Share More
/ Text Size+

Seattle-based HomeStreet (HMST), the parent company of HomeStreet Bank, agreed to sell a portion of its single-family mortgage servicing rights to SunTrust Mortgage.

The total servicing rights accrue to approximately $3 billion in total unpaid principle balance of single-family mortgage loans serviced for Fannie Mae, representing about 25% of HomeStreet’s total single-family mortgage loans serviced for others portfolio.  

“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 January 1, 2015, effective date of the new Basel III-based regulatory capital standards,” said HomeStreet CEO Mark Mason.

As a result of the sale, HomeStreet should experience an increase of approximately $5.4 million in mortgage servicing income for the quarter ending June 30, 2014.

Meanwhile, when it comes to nonbanks and MSR transfers, the Federal Housing Finance Agency Office of the Inspector General released a report Tuesday pushing the FHFA to establish a risk-management process unique to nonbank special servicers to better oversee how the enterprises control inherent risks in transferring mortgage servicing rights and performing large-scale servicing operations.

Currently as the market stands, nonbank special servicers wield roughly $1.4 trillion in mortgage servicing rights out of a nearly $10 trillion market. 

Recent Articles by Brena Swanson

Comments powered by Disqus