UPDATE: FIG Partners Initiates HomeStreet at Outperform on Mortgage Profitability

FIG Partners initiated coverage on HomeStreet

with an Outperform rating and a $55 price target. FIG Partners commented, "The majority of originated mortgage loans are underwritten to secondary market standards with most sold to or securitized by Fannie Mae, Freddie Mac or Ginnie Mae. As a result of the securitization process and low default rates, HomeStreet has recognized gross loan sale margins near 3% -- more than double the margin earned by originators that do not securitize." HomeStreet closed at $40.29 on Monday.