HomeBanc completes IPO

HomeBanc Corp. has completed its initial public offering of 34.5 million shares of its common stock at a price to the public of $7.50 per share, the Atlanta-based company announced Monday.

The company said it was the largest mortgage real estate investment trust IPO ever.

The company in March received a letter from the U.S. Department of Housing and Urban Development asking for answers to questions about the company's marketing alliances with real estate brokers and home builders, and whether those alliances comply with the Real Estate Settlement Procedures Act.

HomeBanc spokesman Mark Scott said the company submitted its response in April, but has not heard anything in response since then.

The HUD inquiry came to light in HomeBanc's preliminary registration statement for its planned initial public stock offering. HomeBanc was in the midst of preparing the Securities and Exchange Commission statement when it received the letter from HUD, Scott said.

HomeBanc Corp. is the parent company of HomeBanc Mortgage Corp., a mortgage banking company that focuses on originating purchase money residential mortgage loans in the southeast United States.

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