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ATLANTA, Aug. 7 /PRNewswire-FirstCall/ -- HomeBanc Corp. ("HomeBanc" or"the Company") today announced that it intends to exit the mortgage loanorigination business. The Company at present is unable to borrow on its credit facilities andwas unable to fund its mortgage loan funding obligations beginning August6, 2007. Accordingly, the Company does not anticipate funding any futuremortgage loans, and is no longer accepting any mortgage loan applicationsor funding any mortgage loans previously originated and not yet funded. TheCompany is seeking the most appropriate course of action to preserve thevalue of its remaining assets. Kevin D. Race, HomeBanc's President and Chief Executive Officer,stated, "In light of the extraordinary difficulties that HomeBanc continuesto face in the mortgage loan origination market, we feel that it is in thebest interests of the Company to exit this business so that we can focus onpreserving the value of our investment portfolio assets and loan servicingoperations." HomeBanc also announced that it has reached agreement with CountrywideFinancial Corporation (NYSE: CFC) whereby Countrywide will acquire certainassets related to HomeBanc's retail loan origination operations, includingup to five branches located in Georgia, Florida and North Carolina, andwill assume the leases related to those branches. In addition, Countrywideexpects to make offers of employment to substantially all of HomeBanc'sretail loan originators. Countrywide will pay no cash premium in thistransaction and will not acquire any other assets or assume any otherliabilities related to HomeBanc. This transaction, which is subject tocertain conditions, is expected to close by August 10, 2007. HomeBanc is the parent holding company of HomeBanc MortgageCorporation, a mortgage banking company that traditionally has focused onoriginating primarily prime purchase money residential mortgage loans inthe Southeast United States. HomeBanc is headquartered in Atlanta, Georgia,and has offices in Georgia, Florida, North Carolina and Tennessee. For moreinformation about HomeBanc, visit HomeBanc on the Internet athttp://www.homebanc.com. Cautionary Notice Regarding Forward-Looking Statements This press release may include forward-looking statements within themeaning and subject to the protection of Section 27A of the Securities Actof 1933 and Section 21E of the Securities Exchange Act of 1934. Suchforward- looking statements include, among others: HomeBanc's intention toexit the mortgage loan origination business; the timely completion of theCompany's above referenced transaction on favorable terms, if at all; andHomeBanc's pursuit of a course of action that will preserve the value ofits remaining assets. Such forward-looking statements are based on information presentlyavailable to the Company's management and are subject to various risks anduncertainties, including, without limitation: HomeBanc's inability to exitthe mortgage loan origination business in a timely and/or cost efficientmanner; HomeBanc's inability to identify, pursue and effect, on attractiveterms, if at all, a course of action that will preserve the value of itsremaining assets, including, without limitation, as the result of furthermarket difficulties, actions of third parties or otherwise; the inabilityof the parties to timely complete the above described transaction; and theother risks and factors described in the Company's SEC reports and filings,including, without limitation, under the captions "Special CautionaryNotice Regarding Forward- Looking Statements" and "Risk Factors." You should not place undue reliance on forward-looking statements,since the statements speak only as of the date that they are made. TheCompany has no obligation and does not undertake to publicly update, reviseor correct any of the forward-looking statements after the date of thispress release, or after the respective dates on which such statementsotherwise are made, whether as a result of new information, future eventsor otherwise, except as may be required by law.
