HomeStreet dips after buyout deal with FirstSun Capital falls through
Updates
** Regional lender HomeStreet's HMST.O shares fall as much as 5.1%; last down 1% at $10.97
** Peers FirstSun Capital Bancorp FSUN.O and HMST have mutually agreed to terminate their buyout deal, the companies say
** In January, FSUN had agreed to buy HMST for $14.75/share, which was revised to $13.53/share in May
** Deal failed to secure the necessary regulatory approvals, the companies had said last month
** Piper Sandler says the most likely scenario is for HMST to sell to another bidder, since going alone would likely require more onerous loan sales
** Brokerage says potential buyers could be ones that want HMST's unique Fannie Mae delegated underwriting and servicing (DUS) license that only 24 other institutions hold across the country
** DUS program allows lenders such as HMST to underwrite, close and service loans
** As of last close, HMST shares up 7.6% YTD
Reporting by Arasu Kannagi Basil in Bengaluru
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