HomeBanc Discloses RESPA Probe

HomeBanc Mortgage Corp. has disclosed that it is the subject of a government inquiry into possible violations of the Real Estate Settlement Procedures Act involving its alliances with nearly 100 real estate brokers and homebuilders.The Atlanta-based company, which is in the process of going public, places loan officers in the offices of RE brokers and builders and pays a flat monthly fee to cover the rent and other services received. RESPA prohibits the payment of referral fees and kickbacks between lenders, real estate agents, and homebuilders. However, HomeBanc maintains that the monthly fees are proper under RESPA. "We believe our alliance agreements are perfectly in compliance with RESPA regulations," said Mark Scott, HomeBanc's vice president for marketing. HomeBanc disclosed the RESPA inquiry in a preliminary registration filing with the Securities and Exchange Commission. The Atlanta Journal-Constitution first reported the inquiry.