Seattle bank HomeStreet announced this week it will sell a piece of its mortgage servicing rights to Matrix Financial Services. The deal, which includes an unpaid principal balance of $4.9 billion in single-family MSRs, amounts to approximately 20% of the bank’s single-family servicing portfolio.
In addition to the MSR sale, HomeStreet said it expects to transfer $27.2 million of related deposit balances to Matrix.
HomeStreet Chairman, President and CEO Mark Mason said the bank intends to continue servicing most of the mortgages it originates.
“The sale of this portfolio of mortgage servicing rights is part of our ongoing balance sheet and capital management,” Mason said in a statement. “This sale will provide regulatory capital relief to support the continued growth of our commercial and consumer banking business.”
HomeStreet is a $6.9 billion-asset company that operates mortgage banking and commercial and consumer banking channels in the Western U.S. and Hawaii.
Matrix is a subsidiary of Two Harbors Investment Corp., a publicly traded real estate investment trust that acquires MSRs and uses subservicers.
The sale is expected to close in mid-August and a price was not disclosed.