HomeBanc Corp. Announces Intention to Exit the Mortgage Loan Origination Business

    ATLANTA, Aug. 7 /PRNewswire-FirstCall/ -- HomeBanc Corp. ("HomeBanc" or
 "the Company") today announced that it intends to exit the mortgage loan
 origination business.
     The Company at present is unable to borrow on its credit facilities and
 was unable to fund its mortgage loan funding obligations beginning August
 6, 2007. Accordingly, the Company does not anticipate funding any future
 mortgage loans, and is no longer accepting any mortgage loan applications
 or funding any mortgage loans previously originated and not yet funded. The
 Company is seeking the most appropriate course of action to preserve the
 value of its remaining assets.
     Kevin D. Race, HomeBanc's President and Chief Executive Officer,
 stated, "In light of the extraordinary difficulties that HomeBanc continues
 to face in the mortgage loan origination market, we feel that it is in the
 best interests of the Company to exit this business so that we can focus on
 preserving the value of our investment portfolio assets and loan servicing
 operations."
     HomeBanc also announced that it has reached agreement with Countrywide
 Financial Corporation ( CFC) whereby Countrywide will acquire certain
 assets related to HomeBanc's retail loan origination operations, including
 up to five branches located in Georgia, Florida and North Carolina, and
 will assume the leases related to those branches. In addition, Countrywide
 expects to make offers of employment to substantially all of HomeBanc's
 retail loan originators. Countrywide will pay no cash premium in this
 transaction and will not acquire any other assets or assume any other
 liabilities related to HomeBanc. This transaction, which is subject to
 certain conditions, is expected to close by August 10, 2007.
     HomeBanc is the parent holding company of HomeBanc Mortgage
 Corporation, a mortgage banking company that traditionally has focused on
 originating primarily prime purchase money residential mortgage loans in
 the Southeast United States. HomeBanc is headquartered in Atlanta, Georgia,
 and has offices in Georgia, Florida, North Carolina and Tennessee. For more
 information about HomeBanc, visit HomeBanc on the Internet at
 www.homebanc.com.
     Cautionary Notice Regarding Forward-Looking Statements
     This press release may include forward-looking statements within the
 meaning and subject to the protection of Section 27A of the Securities Act
 of 1933 and Section 21E of the Securities Exchange Act of 1934. Such
 forward- looking statements include, among others: HomeBanc's intention to
 exit the mortgage loan origination business; the timely completion of the
 Company's above referenced transaction on favorable terms, if at all; and
 HomeBanc's pursuit of a course of action that will preserve the value of
 its remaining assets.
     Such forward-looking statements are based on information presently
 available to the Company's management and are subject to various risks and
 uncertainties, including, without limitation: HomeBanc's inability to exit
 the mortgage loan origination business in a timely and/or cost efficient
 manner; HomeBanc's inability to identify, pursue and effect, on attractive
 terms, if at all, a course of action that will preserve the value of its
 remaining assets, including, without limitation, as the result of further
 market difficulties, actions of third parties or otherwise; the inability
 of the parties to timely complete the above described transaction; and the
 other risks and factors described in the Company's SEC reports and filings,
 including, without limitation, under the captions "Special Cautionary
 Notice 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. The
 Company has no obligation and does not undertake to publicly update, revise
 or correct any of the forward-looking statements after the date of this
 press release, or after the respective dates on which such statements
 otherwise are made, whether as a result of new information, future events
 or otherwise, except as may be required by law.
 
 

SOURCE HomeBanc Corp.