NEW YORK -- Countrywide Financial Corp. , the largest U.S. mortgage lender, said Tuesday it will buy five loan branches from HomeBanc Corp., which has stopped funding loans and is exiting the business.

Countrywide is taking advantage of a meltdown in the U.S. mortgage market, scooping up assets from a distressed company. It said no cash premium is being paid for HomeBanc assets.

HomeBanc's stock was delisted on Friday by the New York Stock Exchange because its shares were trading at around 30 cents. The company is not a subprime lender, but it has had trouble selling loans it originates in the secondary mortgage market.

At the end of the first quarter, HomeBanc held about $4.3 billion in loans for investment. Most are adustable-rate mortgages in which borrowers make only interest payments.

Countrywide said it is assuming the leases of the HomeBanc branches and it will hire a significant number of HomeBanc's mortgage originators.

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HomeBanc of Atlanta said it stopped funding mortgages on Monday, and doesn't anticipate it will do any future lending. The company said it is taking steps to preserve the value of its remaining assets.

Countrywide is buying HomeBanc branches in Georgia, Florida and North Carolina. Countywide said it will not acquire any other assets or assume any other liabilities connected with HomeBanc.

The deal is expected to close by Friday.

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