It was announced by the Atlanta Journal and Constitution that as of Tuesday Homebanc Mortgage would no longer originate loans due to not being able to fund the loans by drawing on their line of credit. Homebanc is to continue servicing the current portfolio of existing mortgages with Countrywide Home Loans taking over new business.
With Homebanc continuing to service it’s existing loans this question comes to mind; Is there any guarantee, like FDIC, for escrow accounts that pay the taxes and insurance for the homeowners with these Homebanc Mortgages? I guess some research is going to have to be done. As soon as information can be obtained it will be posted here in a follow up article.