HomeBanc Corp. Announces Intention to Exit the Mortgage Loan Origination Business
August 07 2007 - 9:30AM
PR Newswire (US)
ATLANTA, Aug. 7 /PRNewswire-FirstCall/ -- HomeBanc Corp.
("HomeBanc" or "the Company") today announced that it intends to
exit the mortgage loan origination business. The Company at present
is unable to borrow on its credit facilities and was unable to fund
its mortgage loan funding obligations beginning August 6, 2007.
Accordingly, the Company does not anticipate funding any future
mortgage loans, and is no longer accepting any mortgage loan
applications or funding any mortgage loans previously originated
and not yet funded. The Company is seeking the most appropriate
course of action to preserve the value of its remaining assets.
Kevin D. Race, HomeBanc's President and Chief Executive Officer,
stated, "In light of the extraordinary difficulties that HomeBanc
continues to face in the mortgage loan origination market, we feel
that it is in the best interests of the Company to exit this
business so that we can focus on preserving the value of our
investment portfolio assets and loan servicing operations."
HomeBanc also announced that it has reached agreement with
Countrywide Financial Corporation (NYSE:CFC) whereby Countrywide
will acquire certain assets related to HomeBanc's retail loan
origination operations, including up to five branches located in
Georgia, Florida and North Carolina, and will assume the leases
related to those branches. In addition, Countrywide expects to make
offers of employment to substantially all of HomeBanc's retail loan
originators. Countrywide will pay no cash premium in this
transaction and will not acquire any other assets or assume any
other liabilities related to HomeBanc. This transaction, which is
subject to certain conditions, is expected to close by August 10,
2007. HomeBanc is the parent holding company of HomeBanc Mortgage
Corporation, a mortgage banking company that traditionally has
focused on originating primarily prime purchase money residential
mortgage loans in the Southeast United States. HomeBanc is
headquartered in Atlanta, Georgia, and has offices in Georgia,
Florida, North Carolina and Tennessee. For more information about
HomeBanc, visit HomeBanc on the Internet at
http://www.homebanc.com/. Cautionary Notice Regarding
Forward-Looking Statements This press release may include
forward-looking statements within the meaning and subject to the
protection of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward- looking
statements include, among others: HomeBanc's intention to exit the
mortgage loan origination business; the timely completion of the
Company's above referenced transaction on favorable terms, if at
all; and HomeBanc's pursuit of a course of action that will
preserve the value of its remaining assets. Such forward-looking
statements are based on information presently available to the
Company's management and are subject to various risks and
uncertainties, including, without limitation: HomeBanc's inability
to exit the mortgage loan origination business in a timely and/or
cost efficient manner; HomeBanc's inability to identify, pursue and
effect, on attractive terms, if at all, a course of action that
will preserve the value of its remaining assets, including, without
limitation, as the result of further market difficulties, actions
of third parties or otherwise; the inability of the parties to
timely complete the above described transaction; and the other
risks and factors described in the Company's SEC reports and
filings, including, without limitation, under the captions "Special
Cautionary Notice Regarding Forward- Looking Statements" and "Risk
Factors." You should not place undue reliance on forward-looking
statements, since the statements speak only as of the date that
they are made. The Company has no obligation and does not undertake
to publicly update, revise or correct any of the forward-looking
statements after the date of this press release, or after the
respective dates on which such statements otherwise are made,
whether as a result of new information, future events or otherwise,
except as may be required by law. DATASOURCE: HomeBanc Corp.
CONTACT: Investors, Carol Knies, +1-404-459-7653, , or Media, Mark
Scott, +1-404-459-7452, , both of HomeBanc Corp. Web site:
http://www.homebanc.com/
Copyright