Dwight Capital Delivers Letter to HomeStreet Board of Directors

The following letter has been sent by Dwight Capital LLC to the Board of Directors of HomeStreet, Inc. HMST today:

April 29, 2019

Board of Directors
HomeStreet, Inc.
601 Union Street, Suite 2000
Seattle, WA 98101
Attention: Mark K. Mason

Dear Members of the Board:

I am writing on behalf of Dwight Capital to express our interest in acquiring a subset of HomeStreet's multifamily mortgage lending business, which would consist of the Fannie Mae DUS lending operations and related mortgage servicing rights, at a premium to its fair market value.

Dwight is a private lender with a national footprint and with offices in New York City, Cleveland, St. Petersburg, and Washington, D.C. Dwight has consistently been a top-5 multifamily HUD lender by both transactions and dollar amount. Dwight also maintains mortgage servicing rights in excess of $3.25 billion.

This letter itself does not constitute an offer and we seek to engage in limited and confirmatory due diligence prior to making a formal offer and executing a binding agreement.

In light of the significance of this letter to your shareholders and ours, as well as the potential for selective disclosures, our intention is to release the text of this letter to the public.

Due to the importance of this proposal, we expect the Board to engage in a full dialogue. My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience. Depending on the nature of your response, Dwight reserves the right to pursue all necessary steps to ensure that HomeStreet, Inc.'s shareholders are provided with the opportunity to realize the value inherent in our proposal.

We believe that our proposal represents a unique opportunity to create significant value for HomeStreet's shareholders and employees. We look forward to a prompt and favorable reply to engage in discussions. Please contact us at 347-846-0773 to discuss further.

Sincerely yours,

DWIGHT CAPITAL LLC

By: /s/ Adam Sasouness
Name: Adam Sasouness
Title: Managing Principal

Address:

Dwight Capital
787 Eleventh Avenue (10^th Floor)
New York, NY 10019

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