Homestar Financial Corporation has closed its doors after two decades. The Gainsville, Georgia-based lender announced it will cease its operations due to “additional mortgage volatility driven by the macro economy.”
Homestar will accept locks through Oct. 31, 2023. It will continue to fund all locked loans in its pipeline. The closure will impact at least 179 loan officers, according to National Mortgage News.
In a statement, the company said, “These unforeseen events have made mortgage lending unsustainable for anyone except the most deep-pocketed lenders.”
West Hunt, founder and CEO of Homestar, said that despite having led the company through the industry’s cyclical ups and downs for two decades, he decided not to incur further financial risk.
Over the past five years, the company originated over $10 billion in consumer mortgages and $2.4 billion last year, with peak loan origination of $340.06 million in March 2021 and dropping to $54.49 million in August of this year. It had licenses to operate in 40 states and Washington D.C.
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