home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.

Bankrupt Firms Face Employee Lawsuits

WARN notices at issue

August 24, 2007


Two lawsuits seeking class action status have been filed against two bankrupt mortgage lenders. At issue is the notice employers are required to give states 60 days ahead of employee layoffs.

Three former employees of HomeBanc Mortgage are seeking 60 days worth of wages, salaries, commissions, bonuses and benefits for themselves and "approximately 1000 other similarly situated employees" in a complaint filed Tuesday in U.S. Bankruptcy Court.

HomeBanc failed to provide 60 days advance written notice to the employees as required by the Worker Adjustment and Retraining and Notification Act, or WARN Act, according to the complaint, which said the employees worked at various HomeBanc facilities in Florida, Georgia, North Carolina and Tennessee.

The three who filed the complaint in the District of Delaware -- Hiwot Mekonnen, Kyiesha Shepard and Sharon Thompson -- all worked in HomeBanc's headquarters office in Atlanta.

HomeBanc filed for Chapter 11 bankruptcy in the Delaware court on Aug. 9.

According to that filing, HomeBanc, on June 30, had $5.1 billion in total assets and $4.9 billion in total debts. The filing also listed 72 creditors as holding the largest unsecured claims.

The complaint maintains that the plaintiffs and the class members are "entitled to first priority administrative expense status" because their situation arose as the result of HomeBanc's "violation of federal laws." It maintains they are entitled to 60 days, less any days prior to the Aug. 10 closing for which notification was received, of "wages, salary, commissions, bonuses, accrued holiday pay, accrued vacation pay, pension and 401(k) contributions and other ERISA benefits."

Each former employee could, alternatively, be entitled to $10,950 of the WARN Act claims on a priority basis, with the remainder being treated as a general unsecured claim, the complaint notes.

A similar complaint, also charging violations of the WARN Act, was filed against American Home Mortgage Corp. on Aug. 8. That suit, filed by two former employees on Aug. 8, refers to "approximately 400" other similarly situated former employees

A pre-trial hearing has been scheduled for October 1 and, after that hearing, a class action certification will be requested, one of the attorneys for the plaintiffs told MortgageDaily.com.

American Home filed for bankruptcy on Aug. 6, listing the "estimated number of creditors" as "over 100,000." Two of its 40 largest creditors -- Credit Suisse First Boston Mortgage Capital and Morgan Stanley Mortgage Capital Holdings -- have filed separate suits in bankruptcy court seeking the transfer to them of certain servicing files, servicing rights, and custodial and escrow account funds on the grounds of breaches of contracts and agreements.

HomeBanc, in a filing Tuesday, asked the bankruptcy court for approval of a sale of a pool of mortgages with unpaid principals totaling $238.1 million. HomeBanc said Countrywide's offer was the best offer it received after putting the pool out for bids. Under terms of the sale Countrywide will pay 101.08 percent for loans with unpaid balances totaling $138.1 million and 101.67 percent for the remaining loans.

Jerry DeMuth is an award winning journalist who has been reporting for four decades.

e-mail Jerry at [email protected]
Mortgage Employment News | Employment Index | Employment Statistics
Job additions, layoffs and employment lawsuits. Employment data from the Department of Labor, state tracking, reports and analysis. Job finding tips.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders