Community Reinvestment Act

HomeStreet Bank has again received an "Outstanding" rating in our Community Reinvestment Act (CRA) examination by FDIC regulators. HomeStreet has consistently received the "Outstanding" rating since the inception of the program in 1989. The CRA primarily focuses on how well a bank serves low– and moderate–income individuals, families and communities. There are three areas of focus:

Lending

The first and most important area is in "Lending." HomeStreet makes a large number of home loans specifically to serve low– and moderate–income homebuyers. HomeStreet also makes numerous community development loans through our income property area, HomeStreet Capital. Many of these loans finance apartment buildings with affordable units. HomeStreet provides financing for the construction of single–family homes that are affordable for moderate–income families, a major challenge with the high cost of land in most of our communities. The exam also looks at our small business loans (loans less than $1 million made to commercial entities) and evaluates HomeStreet's partnerships with other banks in consortia to jointly finance "affordable" housing projects.

Service

The second area, "Service," has two parts. The first examines how well HomeStreet delivers its services to individuals and communities of low– and moderate–income. Regulators consider whether our branches are located in communities of low– and moderate–income and what delivery systems we have to take services to those customers. HomeStreet's loan officers take mortgage services to low– and moderate–income customers regardless of location.

The second part of the "Service" area is providing volunteer service and fundraising to organizations that serve low– and moderate–income members of our community. Many of HomeStreet's managers and staff serve in leadership positions with such organizations. Others teach classes, both financial skills building and for first–time homebuyers. Organizations our people serve include various Habitat for Humanity organizations, housing policy development organizations, several home ownership and transitional housing organizations, programs that develop housing for low–income residents, medical and psychiatric programs for people of low–income, programs that provide services for people who are homeless or have special needs, programs that help "at risk" youth, services for immigrants and victims of domestic violence.

Investment

The third area is "Investment." HomeStreet Bank gives a large amount of its charitable contributions to community organizations that work to meet the needs of people of low– and moderate–income. Though HomeStreet doesn't invest large amounts of its assets in securities, etc., a significant portion of what HomeStreet invests goes into municipal bonds that support low–income housing and mortgage backed securities comprised of loans for low– and moderate–income homebuyers.

This "Outstanding" rating and the FDIC report is available to the public at all of our branches and at the Home Office through the CRA officer.