Bank of America to Buy $990 Million of Multifamily Loans From HomeStreet

Bank of America Corp. agreed to buy about $990 million of multifamily commercial real estate loans from HomeStreet Inc., a transaction that the seller said would help make it profitable again.

Proceeds from the sale will be used by HomeStreet to pay down Federal Home Loan Bank advances and brokered deposits, which carry higher interest rates than the company’s core deposits, the Seattle-based lender said in a statement Friday. The price equals almost 92% of the unpaid principal balance of the loans.