NEW YORK--(BUSINESS WIRE)--Today, Dwight Capital LLC released the following open letter to the Board of Directors of HomeStreet, Inc. (HMST):
June 4, 2019
Board of Directors
601 Union Street, Suite 2000
Seattle, WA 98101
Attention: Mark K. Mason
Dear Members of the Board:
Dwight Capital presents a preliminary offer of Sixty Million Dollars ($60,000,000.00) to acquire a subset of HomeStreet’s multifamily mortgage lending business, which would consist of Fannie Mae DUS lending operations, mortgage servicing rights, and related assets. This good faith offer is being made subject to limited and confirmatory due diligence, which will be necessary to make a final and binding offer.
Dwight is a private lender with a national footprint and with offices in New York City, Cleveland, St. Petersburg, and Washington, D.C. Dwight has consistently been a top-5 multifamily HUD lender by both transactions and dollar amount. Dwight also maintains mortgage servicing rights in excess of $3.5 billion.
Dwight is uniquely positioned with the infrastructure and employees necessary to absorb HomeStreet’s multifamily mortgage lending business and maximize its production. Conversely, in HomeStreet’s March 6, 2019 10-K, HomeStreet reported a decline in its “Multifamily DUS Loans Sold” from $347,084,000 to $225,323,000, which represents a 35.08% decline in HomeStreet’s production year-over-year.
We believe that our preliminary offer represents a unique opportunity to create significant value for HomeStreet’s shareholders and employees. We look forward to a prompt and favorable reply to engage in substantive discussions.
DWIGHT CAPITAL LLC
By: /s/ Adam Sasouness
Name: Adam Sasouness
Title: Managing Principal
787 Eleventh Avenue (10th Floor)
New York, NY 10019