Hometown Lenders filed for Chapter 11 bankruptcy, attributing its financial trouble to the Federal Reserve's efforts to combat inflation, resulting in a substantial downturn in revenue as mortgage rates rose sharply.
The company owed a significant amount to various entities, with warehouse lender Flagstar Bank holding the largest unsecured claim of $20.1 million, followed by other creditors like First Horizon Bank, Freddie Mac, and the IRS.
#chapter-11-bankruptcy #federal-reserve-policy #financial-strain #mortgage-industry #debtors-claimants
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