Exhibit 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 30, 2008

MONTHLY OPERATING REPORT

DEBTORS’ ADDRESSES:	Homebanc Mortgage Corporation (Case No. 07-11079) Five Concourse Parkway, Suite 3000 Atlanta, GA 30328
	HomeBanc Corp. (Case No. 07-11080) Five Concourse Parkway, Suite 3000 Atlanta, GA 30328
	HomeBanc Funding Corporation (Case No. 07-11081) Five Concourse Parkway, Suite 3000 Atlanta, GA 30328
	HomeBanc Funding Corporation II (Case No. 07-11082) Five Concourse Parkway, Suite 3000 Atlanta, GA 30328
	HMB Acceptance Corporation (Case No. 07-11083) Five Concourse Parkway, Suite 3000 Atlanta, GA 30328
	HMB Mortgage Partners, LLC (Case No. 07-11084) Five Concourse Parkway, Suite 3000 Atlanta, GA 30328
REPORT PREPARER: Subsidiaries	Homebanc Mortgage Corporation and Debtor

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

Homebanc Mortgage Corporation, for itself and its subsidiary debtors; Debtors-in-Possession
By:	/s/ Donald R. Ramon
Donald R. Ramon
Senior Vice President and Controller
Date: June 20, 2008

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 30, 2008

TABLE OF CONTENTS

I.	Consolidating Balance Sheets (unaudited)	4
II.	Consolidating Statements of Operations (unaudited)	5
III.	Consolidating Statements of Cash Flows (unaudited)	6
IV.	Disbursements for Calculating U.S. Trustee Quarterly Fees	10
V.	Certifications	11
VI.	Summary of Post-petition Accounts Receivable and Accounts Payable, including Agings	12
VII.	Debtor Questionnaire	13
VIII.	Bank Account Summary	14

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

Company Guide for Financial Statement Abbreviations

The consolidated financial statements for HomeBanc Corporation and its subsidiary contain both debtor and non-debtor entities. Listed below is a guide to the company abbreviations contained in the financial statements.

Abbreviation	Company Name	Debtor or Non Debtor
HBMC	HomeBanc Mortgage Corporation	Debtor
HBFCI	HomeBanc Funding Corporation	Debtor
HBFCII	HomeBanc Funding Corporation II	Debtor
HMB	HomeBanc Corporation	Debtor
HBMT 2004-1	HomeBanc Mortgage Trust 2004-1	Non-Debtor
HBMT 2004-2	HomeBanc Mortgage Trust 2004-2	Non-Debtor
HBMT 2005-1	HomeBanc Mortgage Trust 2005-1	Non-Debtor
HBMT 2005-2	HomeBanc Mortgage Trust 2005-2	Non-Debtor
HBMT 2005-3	HomeBanc Mortgage Trust 2005-3	Non-Debtor
HBMT 2005-4	HomeBanc Mortgage Trust 2005-4	Non-Debtor
HBMT 2005-5	HomeBanc Mortgage Trust 2005-5	Non-Debtor
HBMT 2006-2	HomeBanc Mortgage Trust 2006-2	Non-Debtor
HBAC	HomeBanc Acceptance Corporation	Debtor
HBTP	HomeBanc Title Partners	Non-Debtor
MI Captive	MI Captive	Non-Debtor
HMB Mortgage Partners	HMB Mortgage Partners	Debtor

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

CONSOLIDATING BALANCE SHEETS (unaudited)

AS OF May 31, 2008

(Dollars in Thousands)

	TRS		HBFC I	HBFC II		HBC		HBAC		Elimination		HMB Consolidated
Assets
Cash	6,766		973	781		(2,032	)	(460	)			6,028
Restricted cash	—		—	—		—		—				—
Mortgage loans held for sale, net	3,294		—	—		—		—		—		3,294
Mortgage loans held for investment, net of allowance	—		—	—		—		—				—
Mortgage servicing rights	—		—	—		—		—				—
Receivable from custodian	—		—	—		—						—
Trading securities	500											500
Securities available for sale	—		—	—		—		—				—
Securities held to maturity	—		—	—		—		—				—
Accrued interest receivable	—		—	—		—						—
Premises and equipment, net	—		—	—		—		—				—
Goodwill, net	—		—	—		—		—				—
Deferred tax asset, net	—		—	—		—		—				—
Accounts receivable from affiliates	—		7,858	—		30,309		—		(38,167	)	—
Investment in subsidiaries	—		—	—		393,947		—		(393,947	)	—
Other assets	11,961		—	—				—				11,961
Total assets	22,521		8,831	781		422,224		(460	)	(432,114	)	21,783
Liabilities and shareholders’ equity
Warehouse lines of credit	—							—				—
Repurchase agreements	—					—						—
Loan funding payable	1,478		—	—		—		—				1,478
Accrued interest payable	—		—			—						—
Accrued expenses	5,545		—	—		—		—				5,545
Other accounts payable	—		—			—		—				—
Accounts payable to affiliates	37,657		—	969				(460	)	(38,166	)	—
Collateralized debt obligations	—		—					—				—
Junior subordinated debentures representing obligation	—					175,260						175,260
Total liabilities	44,680		—	969		175,260		(460	)	(38,166	)	182,283
Minority interest	64		—	—		—		—				64
Shareholders’ equity:
Preferred stock	—		—	—		47,992		—				47,992
Common stock	—		—	—		571		—				571
Additional paid-in capital	393,898		25	25		278,865		—		(393,948	)	278,865
Accumulated deficit	(416,121	)	8,806	(213	)	(62,560	)	—				(470,088	)
Treasury stock	—		—	—		(17,904	)	—				(17,904	)
Accumulated other comprehensive (loss) income	—		—	—		—		—		—		—
Total shareholders’ equity	(22,223	)	8,831	(188	)	246,964		—		(393,948	)	(160,564	)
Total liabilities and shareholders’ equity	22,521		8,831	781		422,224		(460	)	(432,114	)	21,783

Note: Company abbreviations included on cover page to the financial statements

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

CONSOLIDATING STATEMENTS OF OPERATIONS (unaudited)

FOR THE FIVE MONTHS ENDED MAY 31, 2008

(Dollars in Thousands)

	TRS		HBFC I	HBFC II	HBC	HMB Consolidated
Revenue:
MBS Interest Income	710					710
Other Miscellaneous Income	384					384
Total Revenue	1,094		—	—	—	1,094
Expenses:
Professionals	3,193					3,193
Insurance	575					575
Contract Personnel	200					200
Data Facility	—					—
Compensation and Benefits	312					312
Financial Systems	122					122
Record Storage	56					56
Medical Insurance Run-Off Payments	196					196
Loan Sales Expense	117					117
US Trustee Fees	47					47
Office Rental	31					31
Other Misc Operating Expenses	1,067					1,067
Total Expenses	5,916		—	—	—	5,916
Income tax expense	—		—	—	—	—
Net loss	(4,822	)	—	—	—	(4,822	)

Note: Company abreviations included on cover page to the financial statements

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE FIVE MONTHS ENDED MAY 31, 2008

(Dollars in Thousands)

	May 31, 2008
Operating activities
Net loss	$	(4,822	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Decrease in mortgage loans held for sale, net		2,117
Decrease in other assets		1,399
Decrease in other liabilities		(55	)
Net cash (used in) provided by operating activities	$	(1,361	)
Investing activities
Net cash provided by (used in) investing activities	$	—
Financing activities
Net cash (used in) provided by financing activities	$	—
Net decrease in cash		(1,361	)
Cash and cash equivalents at beginning of period		7,389
Cash and cash equivalents at end of period	$	6,028

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

HBMC BALANCE SHEETS (unaudited)

AS OF May 31, 2008

(Dollars in Thousands)

	HBMC		HB Title Partners	Ml Captive	HB Mortgage Partners	Elimination		HBMC Consolidated
Assets
Cash	6,479		176	—	111			6,766
Restricted cash	—		—	—	—			—
Mortgage loans held for sale, net	3,294		—	—	—			3,294
Mortgage loans held for investment, net	—		—	—	—			—
Mortgage servicing rights, net	—		—	—	—			—
Trading securities	500		—	—	—			500
Accrued interest receivable	—		—	—	—			—
Premises and equipment, net	—		—	—	—			—
Goodwill, net	—		—	—	—			—
Deferred tax asset, net	—		—	—	—			—
Other assets	5,840		—	6,121	—			11,961
A/R from affiliates - ELIMINATED	—		4,246	571	77	(4,894	)	—
Investment in subsidiaries - ELIMINATED	751		—	—	—	(751	)	—
Total assets	16,864		4,422	6,692	188	(5,645	)	22,521
Liabilities and shareholders equity
Warehouse lines of credit	—		—	—	—			—
Repurchase agreements	—							—
Loan funding payable	1,478		—	—	—			1,478
Accrued interest payable	—		—	—	—			—
Accounts payable to affiliates	42,551					(4,894	)	37,657
Other liabilities	5,545		—	—	—			5,545
Deferred tax liability			—	—	—	—		—
Total liabilities	49,574		—	—	—	(4,894	)	44,680
Minority interest	—		36	—	28			64
Shareholders’ equity:
Additional paid-in capital	393,898		159	658	56	(873	)	393,898
Accumulated deficit	(426,608	)	4,227	6,034	104	122		(416,121	)
Accumulated other comprehensive income	—		—	—	—			—
Total shareholder’s equity	(32,710	)	4,386	6,692	160	(751	)	(22,223	)
Total liabilities and shareholder’s equity	16,864		4,422	6,692	188	(5,645	)	22,521

Note: Company abbreviations included on cover page to the financial statements

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

HBMC STATEMENTS OF OPERATIONS (unaudited)

FOR THE FIVE MONTHS ENDED MAY 31, 2008

(Dollars in Thousands)

	HBMC		HB Title Partners	Ml Captive	HB Mortgage Partners	HBMC Consolidated
Revenue:
MBS Interest Income	710					710
Other Miscellaneous Income	384					384
Total Revenue	1,094		—	—	—	1,094
Expenses:
Professionals	3,193					3,193
Insurance	575					575
Contract Personnel	200					200
Data Facility	—					—
Compensation and Benefits	312					312
Financial Systems	122					122
Record Storage	56					56
Medical Insurance Run-Off Payments	196					196
Loan Sales Expense	117					117
US Trustee Fees	47					47
Office Rental	31					31
Other Misc Operating Expenses	1,067					1,067
Total Expenses	5,916		—	—	—	5,916
Income tax expense	—		—	—	—	—
Net loss	(4822	)	—	—	—	(4,822	)

Note: Company abreviations included on cover page to the financial statements

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

HBMC STATEMENT OF CASH FLOWS

FOR THE FIVE MONTHS ENDED MAY 31, 2008

(Dollars in Thousands)

	May 31, 2008
Operating activities
Net loss	$	(4,822	)
Adjustments to reconcile net loss to net cash used in Operating activities:
Decrease in mortgage loans held for sale, net		2,117
Net change in funds due from/to affiliates		3,373
Decrease in other assets		1,399
Decrease in other liabilities		(55	)
Net cash used in operating activities		2,012
Investing activities
Net cash used in investing activities		—
Financing activities
Net cash provided by financing activities		—
Net decrease in cash		2,012
Cash and cash equivalents at beginning of period		4,754
Cash and cash equivalents at end of period	$	6,766

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

IV. Disbursements for Calculating U.S. Trustee Fees (Dollars in Thousands)

	HomeBanc Mortgage Corporation		HomeBanc Corp		HomeBanc Funding Corporation		HomeBanc Funding Corporation II		HMB Acceptance Corporation		HMB Mortgage Partners, LLC
Total disbursements during the current month	$	672	$	8	$	—	$	—	$	—	$	—
LESS: Transfers to Debtor-in-Possession Accounts		—		—		—		—		—		—
PLUS: Estate Disbursements made by Outside Sources (i.e. from Escrow Accounts)		—		—		—		—		—		—
Total - Disbursements for Calculating U.S. Trustee Quarterly Fees	$	672	$	8	$	—	$	—	$	—	$	—

Note: Cash disbursements are made from HomeBanc Mortgage Corporation only

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 30, 2008

V. Certifications

A. Bank Reconciliation Certification

The undersigned verifies that, to the best of my knowledge, all of the Debtors’ May 31, 2008 bank balances have been reconciled in an accurate and timely manner.

B. Post-petition Taxes Certification

The undersigned verifies that, to the best of my knowledge, all post-petition tax obligations, including but not limited to, payroll, real property, income, franchise, and other taxes have been paid to the proper taxing authority when due.

Homebanc Mortgage Corporation, for itself and its subsidiary debtors; Debtors-in-Possession
By:	/s/ Donald R. Ramon
Donald R. Ramon
Senior Vice President and Controller
Date: June 20, 2008

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

VI. Summary of Post-petition Accounts Receivable and Accounts Payable, including Agings (Dollars in Thousands)

Accounts Receivable Agings as of Current Month-end

	Amount
Current (due during next 30 days)		—
Past Due 1-30 Days		—
Past Due 31-60 Days		—
Past Due 61-90 Days		—
Past Due Over 90 Days		—
Open Receivables (non-aged)		—
Total Accounts Receivable	$	—

Post-petition Accounts Payable as of Current Month-end

	Number of Days Past Due
	Current		0-30		31-60		61-90		Over 90		Total
Accounts Payable - Trade	$	—	$	—	$	—	$	—	$	—	$	—

Note: all post-petition trade payable invoices received were paid as of month end

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 30, 2008

VII. Debtor Questionnaire

	Yes	No
1.      Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		XXX
2.      Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide and explanation below.		XXX
3.      Have all post-petition tax returns been timely filed? If no, provide an explanation below.	XXX
4.      Are workers compensation, general liability, and other necessary insurance coverages in effect? If no, provide an explanation below.	XXX

Notes:

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 30, 2008

Bank Account Summary

See attached sheets that follow

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UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re: HomeBanc Mortgage Corporation and Debtor Subsidiaries Case No.
Reporting Period: 07-11079
May 1, 2008 -
May 31, 2008

Bank Account Name	Account Owner	Account Number	Ledger Balance
			(amounts in 000’s)
Wachovia Master Cash	HBMC	2080000697499/2000036086601/ 2080000697596	1,761
Wachovia Wind Down Budget DIP	HBMC	2000036086203	2,185
JPMC Operating	HBMC	113207618	(567	)
Wachovia - Restricted Cash Dekalb Co.	HBMC	2000036086656	43
JPMC Liquid Funding Collection	HBMC	709382329	10
JPMC Aggregation Collection	HBMC	730142627	3,047
HomeBanc Title Partners Operating	HB Mtg Partners	Non-Debtor	176
Wachovia Operating	HBMP	2000032602937	111
Wachovia Master Cash	HBFCI	2000015260642	973
Wachovia Master Cash	HBFCII	2000015260655	781
Wachovia Master Cash	HMB	2000016950090	(2,823	)
JPMC - Operating	HMB	1133398359	82
JPMC MBS Settlement Clearing	HMB	66656222	709
Wachovia Master Cash	HBAC	2000015260846	(460	)
			6,028

Bank Reconciliation Certification

The undersigned verifies that, to the best of my knowledge, all of the Debtors’ May 31, 2007 bank balances have been reconciled in an accurate and timely manner.

Homebanc Mortgage Corporation, for itself and its subsidiary debtors in possession

By:	/s/ Donald R. Ramon
Donald R. Ramon
Senior Vice President and Controller
Date: June 20, 2008

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