HomeStreet, Inc. (NasdaqGS:HMST) has recently addressed the proposal put by Blue Lion Capital regarding the sale of the company?s FNMA Delegated Underwriter and Servicer business (DUS license) and associated loan servicing portfolio. Blue Lion Capital had asserted that the DUS Business holds a value ranging between $100 million and $150 million, and further claimed that HomeStreet had received a letter of intent from a potential buyer, meeting the $100 million valuation threshold. HomeStreet has now responded, revealing that on September 15, 2023, the company received an unsolicited non-binding written proposal from a third-party consortium to acquire its DUS Business, which includes the loan servicing portfolio valued at $32 million as of June 30, 2023.

The offer made by this consortium amounted to $57 million (referred to as the ?DUS Purchase Proposal?). It is worth noting that one of the members of this consortium was recommended to HomeStreet by Mr. Griege in a previous communication to the Board of Directors. Upon careful evaluation of the DUS Purchase Proposal, HomeStreet?s Board of Directors and management have concluded that the price offered is insufficient.

However, the company has not disclosed any additional specifics regarding the reasoning behind this decision.