As it continues taking steps to stem mortgage banking losses, HomeStreet Inc. has sold mortgage-servicing rights on nearly $5 billion in government-sponsored enterprise loans.

Losses from its mortgage banking business widened to $6 million in the first quarter of this year from just $1 million in the same three-month period last year.

HomeStreet has blamed its home-lending struggles on the tight Seattle housing market, which has hampered its ability to replace lost refinance business with purchase-money production.


Source: Mortgage Daily