Court OKs Sale of HomeBanc Mortgages
Tuesday August 28, 6:05 pm ET
Bankruptcy Court Approves Sale of HomeBanc Mortgages to Countrywide
WASHINGTON (AP) -- Countrywide Financial Corp. is set to buy $128 million of mortgages from failed lender HomeBanc Corp. and take over leases at five of its offices in the South.
The U.S. Bankruptcy Court in Wilmington, Del., approved the agreement between the two lenders Monday, according to court documents. The decision allows HomeBanc to complete a deal that was already under way before the company filed for bankruptcy on Aug. 9.
Like other mortgage companies that have recently gone under, Atlanta-based HomeBanc is swiftly selling assets, including mortgage loans it agreed to fund before seeking bankruptcy protection. As of June 30, HomeBanc's assets totaled $5.1 billion with total liabilities of about $4.9 billion, according to court papers.
In addition to approving the sale of HomeBanc's loans, the Wilmington court signed off on Countrywide's plan to take over leases at five HomeBanc branches in Georgia, Florida and North Carolina and hire some employees.
