HomeBanc is singing the mortgage blues. Turmoil in the industry hit Atlanta when Atlanta-based HomeBanc Corp. announced it was closing its mortgage loan business, HomeBanc Mortgage Corporation, and selling some assets. The Atlanta Journal and Constitution reported that HomeBanc lent approximately $5 billion in 2006 mainly on Georgia and Florida properties. The company is filing for bankruptcy protection.
HomeBanc is keeping its investment portfolio, which is valued at $4.5 billion. It also is retaining its mortgage servicing rights portfolio, which is worth $8.6 billion. Mortgage servicing rights entitle a company to collect payments and provide other customer service on loans for the life of the loans. Mortgage servicing genrates some income for the company.