XML 32 R19.htm IDEA: XBRL DOCUMENT
v3.25.3

MORTGAGE BANKING OPERATIONS | 9 Months Ended
--- | ---
Sep. 30, 2025
Mortgage Banking [Abstract] |
MORTGAGE BANKING OPERATIONS | MORTGAGE BANKING OPERATIONS LHFS consisted of the following:
(in thousands) | September 30, 2025 |  | December 31, 2024
Single family | $21,397 |  | $543
CRE, multifamily and SBA | 33,588 |  | —
Total | $54,985 |  | $543
Loans sold consisted of the following for the periods indicated:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Single family | $35,925 |  | $342 |  | $39,234 |  | $4,029
CRE, multifamily and SBA | 7,100 |  | — |  | 7,100 |  | —
Total | $43,025 |  | $342 |  | $46,334 |  | $4,029
For loan and lease receivables sold for the quarters and nine months ended September 30, 2025 and 2024, there were no loans sold as part of securitizations. Gain on loan origination and sale activities, including the effects of derivative risk management instruments, consisted of the following:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Single family (1) | $213 |  | $— |  | $213 |  | $42
CRE, multifamily and SBA (1) | 446 |  | — |  | 446 |  | —
Total | $659 |  | $— |  | $659 |  | $42
(1)Gain on loan origination and sale activities is included in other noninterest income in the consolidated income statements. The Company’s portfolio of loans serviced for others is primarily comprised of loans held in U.S. government and agency MBS issued by Fannie Mae and Freddie Mac. The unpaid principal balance of loans serviced for others is as follows:
(in thousands) | September 30, 2025 |  | December 31, 2024
Single family | $4,453,004 |  | $196,895
CRE, multifamily and SBA | 1,886,746 |  | 11,092
Total | $6,339,750 |  | $207,987
The following is a summary of changes in the Company’s liability for estimated single-family mortgage repurchase losses:
| Quarter Ended September 30, | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2025
Balance, beginning of period | $— |  | $—
Reserve liability acquired (1) | 734 |  | 734
Additions, net of adjustments (2) | 4 |  | 4
Balance, end of period | $738 |  | $738
(1)Represents the reserve liability acquired from the Merger on September 2, 2025. (2)Includes additions for new loan sales and changes in estimated probable future repurchase losses on previously sol d loa ns. The Company has agreements with certain investors to advance scheduled principal and interest amounts on delinquent loans. Advances are also made to fund the foreclosure and collection costs of delinquent loans prior to the recovery of reimbursable amounts from investors or borrowers. Advances of $1.1 million were recorded in interest receivable and other assets as of September 30, 2025. There were no advances as of December 31, 2024. When the Company has the unilateral right to repurchase Ginnie Mae pool loans it has previously sold (generally loans that are more than 90 days past due), the Company records the balance of the loans within assets as interest receivable and other assets and within liabilities as interest payable and other liabilities. At September 30, 2025, there were no delinquent or defaulted mortgage loans currently in Ginnie Mae pools that the Company has recognized on its consolidated balance sheets and there were no such delinquent or defaulted mortgage loans as of December 31, 2024. Revenue from mortgage servicing, including the effects of derivative risk management instruments, consisted of the following:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2024 |  | 2025 |  | 2024
Servicing income, net: |  |  |  |  |  |  |
Servicing fees and other | $1,873 |  | $202 |  | $2,218 |  | $786
Changes in fair value of single family MSRs - other (1) | (618) |  | — |  | (618) |  | —
Amortization of multifamily and SBA MSRs | (585) |  | — |  | (585) |  | —
Total | 670 |  | 202 |  | 1,015 |  | 786
Risk management, single family MSRs: |  |  |  |  |  |  |
Changes in fair value of MSRs due to assumptions (2) | (167) |  | — |  | (167) |  | —
Net gain from economic hedging (3) | 177 |  | — |  | 177 |  | —
Total | 10 |  | — |  | 10 |  | —
Loan servicing income | $680 |  | $202 |  | $1,025 |  | $786
(1)Represents changes due to collection/realization of expected cash flows and curta ilmen ts. (2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates. (3)Comprised of net gains on derivatives used as economic hedges of single family MSRs, and net gains on U.S. Treasury notes trading securities used for hedging purposes. Single Family MSRs Balances and activity for single family MSRs are reported beginning on the Merger date of September 2, 2025, therefore there were no balances or activity for the quarters and nine months ended September 30, 2024 and as of December 31, 2024. The changes in single family MSRs measured at fair value are as follows:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2025
Beginning balance | $— |  | $—
Additions: |  |  |
MSRs acquired (1) | 60,166 |  | 60,166
Originations | 155 |  | 155
Net additions | 60,321 |  | 60,321
Changes in fair value: |  |  |
Changes in fair value assumptions (2) | (167) |  | (167)
Other (3) | (618) |  | (618)
Ending balance | $59,536 |  | $59,536
(1)Represents MSRs acquired from the Merger on September 2, 2025. (2)Principally reflects changes in model assumptions, including prepayment speed assumptions, which are primarily affected by changes in mortgage interest rates (3)Represents changes due to collection/realization of expected cash flows and curtailments. Key e conomic assumptions used in measuring the initial fair value of capitalized single family MSRs w ere as fol lows:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(rates per annum) (1) | 2025 |  | 2025
Constant prepayment rate (CPR) (2) | 16.47% |  | 16.47%
Discount rate | 8.73% |  | 8.73%
(1)Based on a weighted average. (2)Represents an expected lifetime average CPR used in the model. For single family MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below:
| September 30, 2025
(rates per annum) | Range of Inputs |  | Average (1)
CPRs (2) | 5.05% - 11.95% |  | 6.89%
Discount Rates | 8.66% - 16.23% |  | 8.99%
(1) Weighted averages of all the inputs within the range. (2) Represents the expected lifetime average CPR used in the model. To compute hypothetical sensitivities of the value of our single family MSRs to immediate adverse changes in key assumptions, we computed the impact of changes to CPRs and in discount rates as outlined below:
(dollars in thousands) | September 30, 2025
Fair value of single family MSRs | $59,536
Expected weighted-average life (in years) | 8.19
CPR |
Impact on fair value of 25 basis points adverse change in interest rates | $(980)
Impact on fair value of 50 basis points adverse change in interest rates | $(1,989)
Discount rate |
Impact on fair value of 100 basis points increase | $(2,585)
Impact on fair value of 200 basis points increase | $(5,050)
Multifamily and SBA MSRs Balances and activity for multifamily and SBA MSRs are reported beginning on the Merger date of September 2, 2025, therefore there were no balances or activity for the quarters and nine months ended September 30, 2024 and as of December 31, 2024. The changes in multifamily and SBA MSRs measured at the lower of amortized cost or fair value were a s follow s:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(in thousands) | 2025 |  | 2025
Beginning balance | $— |  | $—
MSRs acquired (1) | 29,538 |  | 29,538
Originations | 106 |  | 106
Amortization | (585) |  | (585)
Ending balance | $29,059 |  | $29,059
(1)Represents MSRs acquired from the Merger on September 2, 2025. The fair value of multifamily and SBA MSRs was $29.2 million at September 30, 2025. Key economic assumptions used in measuring the initial fair value of capitalized multifamily MSRs were as follows:
| Quarter Ended September 30, |  | Nine Months Ended September 30,
(rates per annum) (1) | 2025 |  | 2025
Discount rate | 13.00% |  | 13.00%
(1)Based on a weighted average. For multifamily MSRs, we use a discounted cash flow valuation technique which utilizes CPRs and discount rates as significant unobservable inputs as noted in the table below. Multifamily DUS loans typically contain yield maintenance features that significantly reduce loan prepayments, resulting in a CPR of zero for valuation purposes.
| September 30, 2025
| Range of Inputs |  | Average (1)
Discount Rates | 13.00% - 15.00% |  | 13.00%
(1) Weighted averages of all the inputs within the range.

X
- Definition Mortgage banking operation. + References No definition available. + Details
Name: | hmst_MortgageBankingOperationsTextBlock
Namespace Prefix: | hmst_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_MortgageBankingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration