HomeBanc looks to sell pipeline loan, branch office assets to Countrywide

By Caroline Salls

Pittsburgh, Aug. 13 - HomeBanc Mortgage Corp. requested court approval to sell some of its pipeline loan and branch office assets to Countrywide Home Loans, Inc., according to a Sunday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the filing, the loan assets to be purchased include mortgage loan submissions made by potential borrowers that had not been closed and funded before the Aug. 7 initial closing date; all rights under the company's compensation plan terms agreement with DC Aiken; and all books, data, files and records related to the loan assets.

HomeBanc said Countrywide will pay a purchase price of 12.5 basis points of the original principal balance of each pipeline loan that is closed in Countrywide's name for 60 days from Aug. 7.

Following all closings, HomeBanc said Countrywide is expected to pay $1.5 million to $2 million for the loan assets.

In addition, Countrywide has agreed to buy five leases for HomeBanc offices in Georgia, Florida and North Carolina, as well as part of the lease for HomeBanc's Atlanta headquarters.

Countrywide will also buy all equipment and furniture at these offices and has agreed to hire some former HomeBanc employees to help with a smooth transition at the acquired branch offices.

The purchase price for the office leases and related assets will be equal to the net book value of the assets, to be determined at closing for each branch office transaction.

HomeBanc, an Atlanta-based mortgage banking business, filed for bankruptcy on Aug. 9. Its Chapter 11 case number is 07-11079.

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