In something of a "merger" between two bankrupt mortgage companies, Pat Flood, the former president of bankrupt Homebanc, has started a new mortgage company in the space formerly occupied by bankrupt SouthStar Funding.
From the Fulton County Daily Report –
Flood, who left HomeBanc on Jan. 12 after its board fired him because of plummeting stock values, said he invested $500,000 of his family’s money into a holding company to start Covenant Mortgage Corp.
“While the board fired me, the Lord promoted me, and Covenant is my new promotion,” said Flood, who was well known for mixing faith and business when he ran HomeBanc. He said he plans to operate Covenant in a similar fashion.
On July 2, Flood, who walked away from HomeBanc with a $4.5 million severance package, incorporated Atlanta-based Covenant Mortgage Corp. and Duluth-based Covenant Capital Corp., the latter a holding company formed to capitalize Covenant Mortgage. …
The new company has just 20 employees and has been operating out of a 4,000-square-foot office at 400 Northridge Parkway at The Pointe just off Ga. 400 in the Central Perimeter business district. The space is part of the 110,000-square-foot office space vacated in April by subprime lender SouthStar Funding LLC after it filed for Chapter 11 bankruptcy protection.