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Mortgage Lenders, Bankruptcy and the Future of the Mortgage Lending Industry
Posted by: Matthew Dunaway
August 12, 2007

Atlanta based mortgage lender HomeBanc Corp has filed Chapter 11 bankruptcy according to an article by The Internation News. This adds to a long list of mortgage lenders filing for bankruptcy protection due to the meltdown in the real estate and mortgage lending market over the last year.

Although many industry analysts claim the damage will be limited to the subprime mortgage market, reasonable people should see the problem extends beyond the subprime market. A "perfect storm" of overzealous lending practices by mortgage lenders and a willingness to incure additional debt by homeowners has lead to a potentially historic problem in the american real estate and lending market.

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