Seattle-based HomeStreet Bank has agreed to sell its $794 million Ginnie Mae loan servicing portfolio to an undisclosed “experienced” buyer, the company announced in a regulatory filing. The transaction is scheduled to close on August 1.
“As HomeStreet carried this servicing portfolio at current market value at June 30, 2025, no gain or loss is expected to be realized upon the close of the sale,” the company stated in a filing with the Securities and Exchange Commission (SEC).
The transaction is subject to customary closing conditions. No purchase price was disclosed.
The deal comes as HomeStreet, Inc., the bank’s parent company, prepares to merge with Mechanics Bank in an all-stock business combination announced in March. The merger is expected to close during the third quarter.
Recently, HomeStreet also sold $990 million in multifamily commercial real estate loans to Bank of America Corp., as part of its ongoing efforts to streamline its balance sheet.
Founded in 1921, HomeStreet is primarily engaged in real estate lending and consumer banking. It operates 56 branches across Washington, Oregon, Southern California and Hawaii, with approximately $8 billion in assets.
According to mortgage technology platform Modex, the bank originated $523 million in residential mortgages over the past 12 months—nearly 65% of which were conventional loans and 49% were purchase originations. As of Tuesday, the company had 66 producing loan officers and 54 active branches.
Mechanics Bank, founded in 1905 and headquartered in Walnut Creek, California, is the larger institution in the deal, with $16 billion in assets and 112 branches.
The transaction allows Mechanics “the opportunity to become a publicly-traded bank holding company, which better positions Mechanics Bank for future opportunities,” said Carl B. Webb, chairman of Mechanics Bank.
“The combined company will have a strong branch footprint and deposit market share in the best markets in the west, strong core deposit funding, a well-diversified, conservatively underwritten loan portfolio and a growing wealth management and trust business,” added Mark Mason, chairman, president and CEO of HomeStreet, who will remain with the combined company in a consulting capacity.
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