Hometown Commercial Capital - Commercial Lending

Recent reports say Burlington, CA based Hometown Commercial Capital, LLC closed its doors two weeks ago, and the web site appears to have been taken down sometime since August 24th, 2008.

A medium-sized commercial lender, sources tell us Hometown Commercial Capital offered loans ranging from $1 to $25 million for the purchase or refinance of commercial real estate, realizing a peak average monthly volume of $40 million in the last quarter of 2007. Hometown Commercial Capital was formed in June of 2005 as a joint venture with San Francisco private equity firm Belvedere Capital Partners. We've been told employees numbered an estimated 150 at peak with eight offices nationwide. About 10 people were left when the operation was shut down.

Hometown Commercial Capital, LLC (HCC) was lead by William G. Fisher, CEO, an ex Wells Fargo executive. One tipster gave us this explanation for the company's demise:

"Hometown was hit a killer blow by the capital crisis in December '07, when LIBOR swayed higher and the company was asked to meet several margin calls. Bill Fisher made the decision to let go their warehouse lending line of credit with RBS Greenwich Capital and look for other partners that could provide some sort of credit line to satisfy the need. During the first half of 2008, several attemps to obtain new financing were made but all failed until the company made the decision to lay everyone off."

In a 2008-05-16 article, Reuters reported Fitch affirmed its ratings on downgrades to commercial mortgage pass-through certificates of Hometown Commercial Capital Trust 2006-1. Of the pool's $130.5 million aggregate collateral balance, 18 loans that accounted for 51.9% of the total were identified by Fitch as "loans of concern for declining performance and occupancy."

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