HomeBanc Becomes Latest Lender To File Ch. 11

Law360, New York (August 10, 2007, 12:00 AM EDT) -- The recent mortgage industry bust has claimed yet another victim, with mortgage lender HomeBanc Corp. filing for Chapter 11 bankruptcy protection Thursday.

The Atlanta-based lender, which filed its voluntary petition for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, listed assets of $5.1 billion and debts of $4.9 billion. The filing came days after HomeBanc announced that it was withdrawing from the mortgage loan origination business, and it would no longer be accepting new mortgage loan applications or funding new loans.

“The recent...
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