HomeBanc Revises Expected 3Q Loss

HomeBanc Corp., Atlanta, has revised the range of its expected third-quarter net loss (under generally accepted accounting principles) from $0.00-$0.04 per share to $0.04-$0.08 per share.Because HomeBanc is structured as a real estate investment trust, its management said REIT taxable income is also a meaningful measure of its performance. Using that measure, HomeBanc is estimating income available to holders of common stock at $0.25-$0.27 per share for the third quarter, up from the previous guidance of $0.22-$0.25. Origination volume for the quarter was $1.3 billion, down 28% from $1.8 billion for the same period in 2005. "The by-product of the industry downturn is overcapacity, margin compression, and aggressive credit practices," said Patrick S. Flood, HomeBanc Corp.'s chairman and chief executive officer. ".... As a result, we are accelerating certain expense reduction efforts to better position our company to confront the challenges of the environment in which we are operating." HomeBanc can be found on the Web at http://www.homebanc.com.