Homebanc Raleigh Mortgage Update
August 14th, 2007 Categories: Mortgage and Finance
A couple of weeks ago I posted an article on a special promotion HomeBanc Mortgage company was offering to borrowers in the Raleigh area. Since that post, a few things have changed.
First, and foremost, HomeBanc has exited the mortgage origination business and has sold many of their assets to Countrywide Mortgage. This sale included loans in process as well as some HomeBanc employees and facilities.
The Raleigh mortgage office on Creedmoor Road is still in place and many of the loan officers are still there. Many of these people are friends of mine and I can tell you they are very relieved and hopeful regarding what has happened.
The mortgage industry as a whole is experiencing severe pressures from the sub-prime meltdown that I’m sure you have been hearing about almost daily in the national business news. Several other mortgage companies have had to dissolve their business and suddenly stop funding loans. Not a pleasant experience if that happens to you on the day of closing. HomeBanc’s solution, to sell assets to Countrywide, seems to be a much better alternative for clients as well as employees.
The article I posted mentioned a $1,000 Home Depot gift card for loans applied for by the end of August and closed by the end of November. That offer is formally off the table. However, some of my contacts there will still honor the offer in the form of a $1,000 closing cost incentive. Give me a call or email me if you want to take advantage of this and I’ll get you connected with the right person.
[...] You cannot turn on the news without hearing about rising foreclosure rates and lenders whose future stability is in question. Or worse yet, lenders that can no longer fund client loans at closing. A recent example is HomeBanc, a lender with operations here in our Raleigh market that many of my clients had done business with in the past. Yikes… this is hitting pretty close to home folks! We need a better understanding of what we are dealing with. [...]