Homebanc Closes Atlanta Mortgage Business
From the AJC -
The announcement comes a day after American Home Mortgage, once one of the nation's biggest lenders, filed for Chapter 11 bankruptcy protection. Also on Monday, two other large mortgage firms in Houston and Cleveland said they were suspending new loan applications.
HomeBanc, in a statement on its Web site, said it is unable to borrow on its credit facilities and was unable to meet its mortgage loan funding obligations as of Monday.
"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 but not yet funded," HomeBanc said.
we have a construction loan with homebanc that has not been fully funded. Our builder has had to stop and we have had no news from Homebanc. No one anwers the phone either. Where can I go for info on how to procede?
I have a file with a mortgage that was paid off in 1999. I need to send Homebanc a release to execute but need to know where to send it now.
I need to get a satisfactionon a mortgage that was paid off in 2003. Who do I contact
And here is food for thought: that is just the residential mortgage market. A similar mortgage-backed security market exists for commercial loans. That is the shoe that has not fully dropped yet. Many of the same circumstances apply. Through Special Purpose Entities, borrowers were able to limit their liability to the property and the entity, effecting non-recourse status as to the real principals. The lenders were again able to securitize the risk of a non-paying loan and so had less incentive to underwrite and more incentive to close.
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