HomeStreet disappointed at shareholder's notice of intent to nominate board member

Mortgage lender HomeStreet has announced that activist shareholder Blue Lion has issued a notice of intent to nominate its principal, Charles Griege Jr., as a member of HomeStreet’s board of directors.

“The HomeStreet Board regularly analyzes its composition to ensure we have the right mix of experience, expertise and perspectives to best represent the interests of all HomeStreet shareholders,” HomeStreet said in a statement. “Our Board will carefully evaluate the Blue Lion Notice.”

HomeStreet has sold the majority of its mortgage servicing rights and its mortgage origination business over the past several months to strategically pull out of its mortgage banking business. The bank said it wanted to focus on its commercial and consumer banking business instead.

Since Blue Lion’s proxy contest last year, the company said it has “engaged extensively” with the activist firm and provided Griege “regular access” to HomeStreet senior management.

“HomeStreet is disappointed that Blue Lion has decided on this action, as we would have preferred avoiding another distracting and unnecessary proxy contest,” HomeStreet wrote in a statement. “This comes at a time when the Company is focused on executing the transactions associated with the Home Loan Center Sale and MSR Sale and the strategic shift from exceptional growth and earnings diversification to a focus on efficiency and profitability.”