Blue Lion believes HomeStreet should ‘immediately’ sell FNMA DUS license

Blue Lion Capital, an investment firm that says it beneficially owns approximately 2.0% of the stock of HomeStreet, announced that it has issued a letter to shareholders regarding the Bloomberg News article dated August 1 that HomeStreet Bank is exploring options including a sale, stating in part: “Blue Lion believes that HomeStreet should immediately proceed with a sale of its FNMA DUS license and use the proceeds from the sale to re-position its balance sheet and remove the concerns regarding the viability of the bank… This is not the first time that Blue Lion has made comments regarding HomeStreet and its DUS license. On June 13, 2019, after Dwight Capital made an offer to purchase the DUS license and associated mortgage servicing rights form HomeStreet, Blue Lion issued a press release encouraging the Board of Directors to fully engage with Dwight Capital and other interested parties to determine the value of the license.”