Washington

The moves are part of an ongoing effort by the Seattle bank to largely exit mortgage lending.

HomeStreet Bank will attempt to sell its stand-alone mortgage business and portfolio of servicing rights, a move that comes amid growing pressure from an activist investor to exit home lending and concerns about declining demand and regulatory challenges.

A U.S. District judge in Scranton denied the student lender's motion to dismiss the suit.

The deal is designed to improve capital ratios and reduce risk at the Seattle company.

As housing demand continues to challenge low levels of supply, home prices are overvalued in 34% of the largest U.S. metropolitan areas, according to CoreLogic.