HomeStreet halts certain practices


POSTED: Saturday, May 16, 2009

Seattle-based HomeStreet Bank and parent company HomeStreet Inc. have reached agreement on a cease-and-desist order with federal and state regulators pertaining to operational policies and loan practices.

The bank, which has branches in Honolulu, Pearl City, Kahului, Hilo and Lihue, will make certain changes to strengthen its ability to weather the economic downturn, according to a statement.

“;This has no bearing on the safety of deposits,”; said Mona Choy-Beddow, banking manager for Hawaii.

Deposit accounts are insured for up to $250,000 by the Federal Deposit Insurance Corp.

“;They've been here for a while ... and have operated within the bounds of Hawaii's statutes, and we have no negative picture of their operations,”; said Nick Griffin, state commissioner for the Division of Financial Institutions.

The order is “;not uncommon”; and is “;basically a way for regulators to work through the process of guiding the bank toward a more appropriate condition going forward,”; Griffin said.