Charles W. Griege, Jr. of Blue Lion Capital explains why investors value commercial banks at a premium to mortgage banks

Extracted from the letter (November 20, 2017) sent by Blue Lion Capital to the CEO of HomeStreet (HMST)

Source: https://www.sec.gov/Archives/edgar/data/1518715/000089706917000559/cg993992.htm

My reasons for suggesting that HMST slow down the growth in its mortgage division were as follows:

1)

In our experience, the earnings of a well-run mortgage bank are v…