Exhibit 10.31

Correspondent Purchase and Sale Agreement

This Correspondent Purchase and Sale Agreement (“Agreement”) is effective as of September 1, 2010, by and between HomeStreet Bank, a Washington state-chartered savings bank (“Purchaser”), and Windermere Mortgage Services Series LLC, a Delaware series limited liability company (“Seller”). This Agreement replaces and supersedes in its entirety that certain Correspondent Purchase and Sale Agreement effective May 1, 2005, as amended effective January 1, 2008.

WHEREAS, Purchaser intends to buy and Seller intends to sell residential, whole mortgage loans (“Mortgage Loans”) on a servicing released basis pursuant to the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual promises set forth below, and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, Purchaser and Seller agree as follows:

ARTICLE I

PURCHASE AND SALE OF MORTGAGE LOANS

During the term of this Agreement, Seller may offer for sale to Purchaser, and Purchaser may agree to purchase from Seller, eligible Mortgage Loans pursuant to the terms and conditions of this Agreement, pursuant to a Commitment procedure, as follows: At any time during the term of this Agreement, the parties may enter into a written or an oral Commitment for the sale and purchase of specifically identified Mortgage Loans. As part of such Commitment, the parties will agree to a Purchase Price and certain other material terms applicable to the Mortgage Loans to be sold there under. The Purchase Price for each eligible Mortgage Loan shall be based on the market price, plus Service Release Premium, adjusted as applicable based on the adjustment provisions posted on Purchaser’s rate sheets, in Purchaser’s Residential Lending Products Manual, and/or on the SRP Database (collectively, the “Product Pricing Materials”). The Purchase Price is additionally subject to adjustments by Purchaser for underwriting or other factors listed in Purchaser’s Product Pricing Materials prior to the purchase. The Purchase Price shall apply only to Mortgage Loans bearing the specified rate of interest and complying with the other terms as set forth in the Commitment and this Agreement. The Commitment is binding between Seller and Purchaser and, provided that such Mortgage Loans are in fact closed (as between the Seller as lender and the respective borrowers), shall constitute and require delivery by Seller to Purchaser of the specific Mortgage Loans covered thereby.

For purposes of this Agreement, eligible Mortgage Loans include only such loans as comply with Purchaser’s investor requirements set forth in Purchaser’s Residential Lending Products Manual, as such Manual may be amended from time to time in Purchaser’s discretion. Without limiting the foregoing, eligible Mortgage Loans include those underwritten and approved in accordance with the investor Delegated Underwriting (“DU”) systems or procedures, as they may be amended from time to time.

ARTICLE 11

PAYMENT OF PURCHASE PRICE AND

1

DELIVERY OF LOANS

Purchaser shall, upon receipt from Seller of a fully documented loan package for each Mortgage Loan, deliver the agreed upon Purchase Price (less any fees or discounts due to the Purchaser), in accordance with Seller’s instructions or in accordance with any bailee letter or trust receipt submitted with the loan package. Seller will deliver the loan package to the Purchaser in a timely manner, but no later than the expiration date confirmed at the time the Mortgage Loan is locked on the Purchaser’s automated lock system, unless delivery is extended by Purchaser in writing. In the event any Mortgage Loan sold to Purchaser hereunder is prepaid in full within one hundred twenty (120) days following the date such Mortgage Loan is sold to Purchaser hereunder, Seller shall refund the servicing release premium and any rebate pricing paid by Purchaser at the time of purchase.

ARTICLE III

GENERAL REPRESENTATIONS AND WARRANTIES

OF SELLER

As of the date of this agreement and as of the date of each submission of a Mortgage Loan to Purchaser hereunder, Seller hereby makes the following representations, warranties, and covenants to Purchaser. Purchaser shall be deemed to have relied on these representation, warranties, and covenants, regardless of any underwriting or independent investigation Purchaser may have made or any facts known to Purchaser.

2

ARTICLE IV

REPRESENTATIONS, WARRANTIES, AND COVENANTS OF SELLER AS TO MORTGAGE

LOANS

In addition to the representations, warranties, and covenants of Seller set forth in Section III of this Agreement, Seller hereby makes the following representations, warranties, and covenants to Purchaser as of the time the parties enter into any Commitment relating to a Mortgage Loan and at the time a Mortgage Loan is sold to Purchaser.

3

ARTICLE V

INDEMNIFICATION, REPURCHASE AND REMEDIES

5.1 Seller hereby agrees to repurchase any Mortgage Loan sold to Purchaser at any time during the life of such Mortgage Loan, within 30 days of Purchaser’s written request for repurchase, notifying the Seller of the occurrence of any of the following events:

a. Purchaser is required to repurchase any Mortgage Loan sold to GNMA, FNMA, FHLMC, or any other investor, for any reason other than reasons/defects which Purchaser knew of due to Purchaser’s provision of underwriting services related to the Mortgage Loan.

b. Any material fraud, misrepresentation, or act or omission in the origination, closing, or funding of the Mortgage Loan is determined to exist by Purchaser or by other investor. This includes, without limitation, any misrepresentation of income, funds on deposit, employment, debts or expenses of the borrower, or the occupancy of the property.

c. Any document related to any Mortgage Loan is found by Purchaser to be defective, not properly executed, altered, or incomplete.

d. Any representation, warranty, or covenant made by Seller under this Agreement with respect to any Mortgage Loan, shall be, in the reasonable opinion of Purchaser, false at the time made.

e. Any one of the first four (4) monthly payments becomes 90 days or more delinquent.

4

The repurchase price for any Mortgage Loan that Seller is asked to repurchase from Buyer shall be an amount equal to its then unpaid principal balance of the Mortgage Loan on the date of repurchase, plus accrued interest and direct expenses (including reasonable attorney’s fees) incurred by Purchaser for any actions taken by it concerning, as a result of, or in connection with, any of the events or circumstances set forth herein as cause for repurchase. Purchaser’s exercise of its right to have Seller repurchase any Mortgage Loan hereunder shall be in addition to, and not in lieu of, any other rights or remedies which Purchaser may have against Seller hereunder or under applicable law.

The parties agree that Seller shall have no obligation to repurchase a Mortgage Loan if the primary cause of the noncompliance or breach is due to underwriting services provided by Purchaser to Seller related to the Mortgage Loan.

5.2 Seller agrees to defend, indemnify and hold Purchaser harmless from and against any and all losses, damages, liabilities, claims, causes of action, judgments, costs or expenses (including without limitation reasonable attorneys’ fees and costs, including such fees and costs on appeal) which arise from or relate to Seller’s wrongful acts or omissions in the performance of this Agreement, breach of its obligations under this Agreement, misrepresentations or breach of warranties made herein, or violations of any applicable laws.

Upon written notice by Purchaser to Seller of a breach of any representation or warranty set forth in this agreement which materially and adversely affects the interests of Purchaser with respect to a Mortgage Loan submitted hereunder, Seller shall cure such breach in all material respects, indemnify Purchaser as set forth in this Section, and/or shall repurchase the Mortgage Loan (or the collateral which had secured the Mortgage Loan, if Purchaser has foreclosed or otherwise obtained title to the collateral) from Purchaser, at Purchaser’s option.

Seller will be in default under this Agreement upon, among other reasons, any misrepresentation or breach of warranty by Seller or the non-fulfillment or non-perfomance by Seller of any covenant, condition or action required of it under this Agreement, and Seller will be subject to any remedies available to Purchaser, including, but not limited to, termination of this Agreement, indemnification of Purchaser by Seller, and Seller’s obligation to repurchase one or more of the Mortgage Loans.

ARTICLE VI

DURATION OF AGREEMENT

The term of this Agreement shall commence on October 1, 2010, and will continue unless terminated as follows. This Agreement shall terminate automatically if Seller is dissolved and winding up of the Seller is completed, or if the Purchaser is liquidated, dissolved, or no longer conducting business. This Agreement may also be terminated by the mutual written consent of the Seller and Purchaser, which shall address the fulfillment of any outstanding Commitments at the time of any such termination.

ARTICLE VII

MISCELLANEOUS

5

6.1 The representations, warranties, covenants and agreements contained in this Agreement shall survive the date of funding of any Mortgage Loan and delivery of such Mortgage Loan to Purchaser and shall not terminate, notwithstanding the termination of this Agreement, any restrictive or qualified endorsement on any Mortgage Note or Purchaser’s examination or failure to examine any Mortgage File, Purchaser’s approval of any Mortgage Loan for purchase or Purchaser’s purchase of any Mortgage Loan.

6.2 This Agreement is made with reference to and is intended to be governed by, construed, and enforced in accordance with the laws of the State of Washington.

6.3 All notices, requests, demands, and other communications required or which may be given under this Agreement shall be in writing and shall be deemed to have been duly given at the time of delivery if personally delivered or 72 hours after the time of mailing if mailed first-class, postage prepaid and addressed to the parties to this Agreement at the addresses set forth below their respective signatures on this Agreement.

6.4 The failure of any party to this Agreement at any time or times to require strict performance of any provision of this Agreement shall not, in any manner, affect the right of such party at a later time to enforce any such provision. No waiver by any party of the breach of any term or covenant contained in this Agreement shall be deemed to be a release or affect any liability resulting from such breach. No wavier of any nature, whether by contact, course of dealing, or otherwise, in any one or more instances shall be deemed to be or be construed as a furthering or continuing waiver of any such condition or breach or as a waiver of any other condition or of any other breach of any other term or covenant of this Agreement.

6.5 No party may assign any of its rights or obligations under this Agreement without the prior written consent of the other party in such other party’s sole discretion. Except as provided in this paragraph, this Agreement shall be binding upon and inure to the benefit of the successors, heirs, assigns, and personal representatives of the parties.

6.6 This agreement contains the entire agreement between the parties with respect to the subject matter of this Agreement. There are no representations, warranties, understandings or agreements other than those expressly set forth or referenced in this Agreement.

6.7 The captions of the sections and paragraphs of this Agreement are inserted for the convenience of reference only and shall not be deemed to modify or otherwise affect in any respect any of the provisions of this Agreement.

6.8 In the event that any party to this Agreement retains an attorney to enforce any of the provisions of this Agreement, then the prevailing party shall be entitled to reasonable attorneys’ fees from the other party, including fees incurred in both trial or appellate courts, or fees incurred without suit, and all court and accounting costs.

6.9 This Agreement may be executed in separate counterparts, all of which taken together will constitute one and the same instrument.

6

IN WITNESS WHEREOF, the Seller and the Purchaser have caused their names to be signed hereto by their respective officers thereunto duly authorized as of the 18th day of November 2010, to be effective as of the date first above written.

7