HomeBanc Mortgage files for Ch. 11

[CurtEastPoint]

Source: Atlanta Journal/Constitution

HomeBanc Corp., the Atlanta-based mortgage lender that ceased new loan applications this week, has filed for Chapter 11 bankruptcy protection, the company's investor relations director said Friday.

The filing was made late Thursday in Wilmington, Delaware, said Carol Knies, HomeBanc's vice president of investor relations.

HomeBanc, which had been reorganizing operations amid stress in the housing market, said Monday it would sell its mortgage operations and related assets to Countrywide Financial Corp. because its no longer could access its credit lines to fund new loans.

HomeBanc has listed assets of $5.1 billion and debt of $4.9 billion according to the 22-page filing. Among its biggest creditors: JPMorgan Chase & Co., Fannie Mae, Freddie Mac, Wells Fargo Bank, Commerzbank AG, U.S. Bank, PriceWaterhouseCoopers and BNP Paribas.

No link yet.

[nadinbrzezinski]

1. The house of cards is starting to teeter on the edge

of collapse if not going down there

[wryter2000]

2. Thank heaven people with mortgages can reorganize under bankruptcy

Oh, wait...they can't.

[AndyA]

3. Another one bites the dust.

I wonder how many more?

Bush's credit-driven economy is coming to a screeching halt. Voo-Doo economics didn't work for his Daddy, and it won't work for Chimpy, either.

[ChairmanAgnostic]

4. say, why don't we cut taxes for corporations? that ought to fix it

real damned fast, no?

[Warpy]

5. I'm still seeing TV ads for Countrywide

They must've kept news of impending disaster from their advertising department.

[krkaufman]

8. Countrywide is the company to which HomeBanc sold its assets.

Countrywide isn't yet going under.

[cliss]

6. Weekend news from your roving reporter, Cliss.

1) I read on Friday afternoon that the SEC (Securities & Exchange Commission) was auditing books of other mortgage lenders / anybody else to see if there was MORE crisis type stuff they weren't telling.

2) I read a rumour that Wells Fargo Bank is actually in dire trouble. Any truth to this story?

You just KNOW all these folks are working this weekend. Sweating profusely, slamming their fists on the table, cursing and trying to save their collective asses before the dam breaks.

Monday ought to be real interesting. If the Fed doesn't fix things, people will start cashing out their stocks in a hurry.:smoke:

[mountainvue]

7. Heard the Wells Fargo rumor but haven't seen any

facts yet. They did shut down their alternative (sub prime) lending division.
If things keep going like this I'm going to end up living in a cardboard box somewhere.
Here's a link to all of the lenders that have ceased funding loans and what little they have told the public about the reasons for it:
http://ml-implode.com/

[Turbineguy]

9. 4.9 billion

at say, $250,000 per bad mortgage that comes to 19,600 foreclosures. There are close to 100 million homeowners in the US.

AIG has $2 million in loans in default. The stock has fallen $17 billion as a result of this. Why are the talking heads screaming fear and greed while leaving out actual numbers?

[sarcasmo]

10. When the walls come tumbling down.

I see so many luxury items for sale in front of houses here in West Michigan. IMHO to many are middle class families are hanging on by a thread and it appears this is just the tip of the iceberg.

[kineneb]

11. waiting to see what happens on Monday

any guesses? I still can't wrap my mind around the Fed adding money twice in one day. Seems rather desperate, to me.

[Bushwick Bill]

12. THREE TIMES!

"The Fed entered the marketplace about three different times to add liquidity to the banking system. The real question is, where does that money go? Does it go to the hedge funds? Does it go to the people who need money to fund some of that collateral? Will it spread to the places who have problems?"
http://www.cbsnews.com/stories/2007/08/10/business/main3154946.shtml?source=RSSattr=HOME_3154946