HomeBanc Completes Securitization

HomeBanc Corp. completed a securitization of approximately $980 million of sequential pay notes backed by adjustable-rate, residential first and second mortgages.HMB Acceptance Corp., a HomeBanc subsidiary, retained approximately $7.3 million of class M-5 notes and $5.9 million of class B notes, as well as a certificate representing all the equity in the trust. The company said the trust will be classified as a taxable mortgage pool for federal income tax purposes and as a result a portion of the residual income that is derived from HomeBanc's interest in the trust will be treated as excess inclusion income. The trust includes approximately $985 million of loans originated by HomeBanc's subsidiary, HomeBanc Mortgage Corp, the company said. "Substantially all of the mortgage loans provide for the payment of interest only for a period of up to ten years, and in some cases after an initial fixed rate period of six months of three, five and seven years, based on the six-month [London interbank offered rate] plus a margin," HomeBanc said. Underwriters for the transaction were Bear Stearns & Co. Inc. and KeyBanc Capital Markets.