HomeStreet (HMST) in Seattle has sold servicing rights to about $3 billion in single-family mortgages to SunTrust Banks (STI) in Atlanta.
The $3.1 billion-asset HomeStreet said in a press release late Monday that the agreement covered unpaid balances on the loans, which it had serviced for Fannie Mae. The portfolio represents about a quarter of the single-family mortgages HomeStreet serviced for others as of March 31.
HomeStreet said the sale should result in a roughly $5.4 million increase in mortgage servicing income for the second quarter.
"The sale of this portfolio of mortgage servicing rights is part of our ongoing balance sheet and capital management," along with preparation for the January 2015 effective date of Basel III regulatory capital standards, HomeStreet Chief Executive Mark Mason said in the release.
The physical transfer of servicing to SunTrust is expected to take place on Oct. 1.