HomeStreet Announces Changes to Fannie Mae DUS Business
HomeStreet, Inc. (Nasdaq: HMST) has announced the reorganization of its Fannie Mae Delegated Underwriting and Servicing (DUS) business, effective September 30, 2020. This move transfers the origination, sale, and servicing of multifamily mortgages from HomeStreet Capital to HomeStreet Bank. The consolidation is expected to leverage the Bank’s capital resources, allowing for larger loan offerings and improved service to clients. HomeStreet has been active in the DUS program since 1988 and remains one of 23 authorized lenders in the U.S.
- Consolidation of DUS operations at HomeStreet Bank may enhance operational efficiency.
- Ability to offer larger loans through the Bank's capital resources.
- Leverages long-term real estate experience to better serve clients.
- None.
SEATTLE--(BUSINESS WIRE)--HomeStreet, Inc. (Nasdaq: HMST) or (“HomeStreet”), the parent company of HomeStreet Bank (the “Bank” and together with HomeStreet, the “Company”), today announced that pursuant to an agreement with Fannie Mae that became effective on September 30, 2020, the Company will reorganize its Fannie Mae Delegated Underwriting and Servicing (“DUS”) business. This agreement will in effect move the origination, sale and servicing of mortgages on multifamily properties under the DUS authority from Fannie Mae to the Bank from a separate subsidiary of HomeStreet, HomeStreet Capital (“Capital”). Capital will continue to service its existing portfolio of DUS loans for the foreseeable future through an intercompany agreement with the Bank.
“We are pleased to be able to consolidate these operations at the Bank,” said Mark K. Mason, President, Chief Executive Officer, and Chairman of the Board of HomeStreet. “By using the Bank’s capital resources and available collateral, we will be able to offer larger loans to our clients and leverage the Bank’s long-term commercial real estate experience and market knowledge to better serve our clients. I would like to thank our colleagues at Fannie Mae for quickly working with us to approve our request to improve this very long-standing relationship.”
HomeStreet has been originating, selling, and servicing multifamily residential loans made through the Fannie Mae DUS program since 1988, and is one of only 23 authorized DUS lenders in the United States.
About HomeStreet, Inc.
HomeStreet, Inc. (Nasdaq:HMST) is a diversified financial services company headquartered in Seattle, Washington, serving consumers and businesses in the Western United States and Hawaii through its various operating subsidiaries. The Company is principally engaged in real estate lending, including mortgage banking activities, and commercial and consumer banking. Its principal subsidiaries are HomeStreet Bank and HomeStreet Capital Corporation. Certain information about our business can be found on our investor relations web site, located at http://ir.homestreet.com. HomeStreet Bank is a member of the FDIC and an Equal Housing Lender.
