<PAGE>   1


                                                                  Exhibit 10.7


                       FIRST AMENDMENT TO LOAN AGREEMENT


         THIS FIRST AMENDMENT TO LOAN AGREEMENT (the "Amendment") executed as
of the 25th day of August, 1997 by and among First Union National Bank, a
national banking association ("First Union")(f/k/a First Union National Bank of
South Carolina), HomeAdd Financial Corporation, a South Carolina corporation
(f/k/a CambridgeBanc, Inc.) ("Borrower"), and RSI Holdings, Inc., a North 
Carolina corporation ("RSI").

                              FACTUAL BACKGROUND:

         First Union has previously extended a revolving line of credit to
Borrower in the original principal amount up to Five Hundred Thousand and
No/100 Dollars ($500,000.00)("Loan") as set forth in that certain Loan
Agreement dated to be effective as of December 12, 1996 (the "Loan Agreement").
Amounts outstanding under the Loan Agreement are evidenced by a certain
promissory note also dated December 12, 1997. Advances made to Borrower
pursuant to the terms of the Loan Agreement have been or will be used to
finance FHA Title I and conventional loans and are secured by the mortgages and
promissory notes evidencing such loans. The Loan Agreement anticipates the sale
of the loans financed by the Loan by the Borrower to various Purchasers (as
defined in the Loan Agreement) as well as the bailment of the collateral to the
same Purchasers on behalf of First Union pursuant to a Bailee Agreement (as
defined in the Loan Agreement).

         Borrower has requested and First Union has agreed (i) to allow bulk
purchases of loans by Purchasers and, therefore, to delete the requirement that
each Purchaser execute a Purchase Commitment prior to purchasing a loan from
Borrower and (ii) to extend the time for repayment of an Advance from fifteen
(15) days to twenty-five (25) days. The parties have agreed to amend the Loan
Agreement accordingly. Additionally, each of Borrower and First Union has
changed its name and desire to recognize the change in this Amendment.

         Any terms used and not otherwise defined herein shall have the meaning
set forth in the Loan Agreement.

         NOW, THEREFORE, in consideration of the mutual promises contained
hereinbelow and of the premises recited hereinabove (which are hereby averred
by the parties to be true and correct) and other good and valuable
consideration, the receipt, sufficiency and adequacy of which the parties do
hereby acknowledge, the parties do hereby agree as follows:


         1.       Each reference to "CambridgeBanc, Inc." in the Loan Agreement
                  and any other Loan Document (as defined in the Loan
                  Agreement) shall be deleted in its entirety and replaced with
                  "HomeAdd Financial Corporation". The term "Borrower" as used
                  therein shall hereafter mean "HomeAdd Financial Corporation".

         2.       Each reference to "First Union National Bank of South
                  Carolina" in the Loan Agreement and any other Loan Document
                  shall be deleted in its entirety and replaced with "First
                  Union National Bank". The term "First Union" as used therein
                  shall hereafter mean "First Union National Bank".

<PAGE>   2


         3.       Section 1.19 of the Loan Agreement is hereby deleted in its
                  entirety and replaced with the following:

                  "SECTION 1.19 "MORTGAGE LOAN" means any mortgage loan to
                  finance an FHA Mortgage or a Conventional Loan Mortgage which
                  First Union has determined in its reasonable sole discretion
                  to be acceptable as security for the Note which has been made
                  to a Mortgagor by Borrower."

         4.       Section 1.25 of the Loan Agreement is hereby deleted in its
                  entirety.

         5.       Section 1.26 of the Loan Agreement is hereby deleted in its
                  entirety and replaced with the following:

                  "SECTION 1.26 "PURCHASE PRICE" means the amount to be paid by
                  a Purchaser to Borrower for the purchase of any specified
                  Mortgage Note(s) and related Mortgage(s)."

         6.       Section 1.27 of the Loan Agreement is hereby deleted in its
                  entirety and replaced with the following:

                  "SECTION 1.27 "PURCHASER" means any person or entity
                  reasonably acceptable to First Union with respect to the
                  purchase of a Mortgage Note(s) and related Mortgage(s). First
                  Union's entering into of a Bailee Agreement with a potential
                  Purchaser shall be deemed to constitute approval of such
                  entity as a Purchaser."

         7.       Section 2.3.3 of the Loan Agreement is hereby amended to
                  delete the requirement that a Purchase Commitment be
                  delivered to First Union before an Advance is made for a
                  Mortgage Loan.

         8.       Section 5.1 of the Loan Agreement is hereby deleted in its
                  entirety.

         9.       Section 5.2 of the Loan Agreement is hereby deleted in its
                  entirety and replaced with the following:

                  "SECTION 5.2 SALE OF MORTGAGE NOTES; PLEDGE OF BORROWER'S
                  ACCOUNT; ACKNOWLEDGEMENT OF Bailment. With respect to each
                  Mortgage Loan, Borrower agrees that the Mortgage Note and
                  Collateral Documents shall be sold to a Purchaser within
                  twenty-five (25) days of the date of the Advance funding the
                  respective Mortgage Loan. Purchaser shall be instructed to
                  pay the Purchase Price thereof directly to Borrower who shall
                  then pay such amounts to First Union in the manner required
                  by First Union herein. Borrower agrees to deliver the
                  originals of the Mortgage, the Mortgage Note, the Collateral
                  Documents and any and all other documents required herein for
                  each Mortgage Loan directly to the Purchaser under cover of a
                  bailee letter in form and content acceptable to First Union
                  (substantially in the form of the Bailee Agreement attached
                  hereto as Exhibit A), and, upon First Union's request, to
                  provide copies of all such documents, along with any other
                  documents requested by First Union, to First Union. Borrower
                  acknowledges that failure of Purchaser to comply with the
                  terms of such bailee letter shall result in Borrower being
                  required to repay the Loan, or a portion thereof, in
                  accordance with the terms of Section 2.2."

<PAGE>   3


         10.      Section 5.4 of the Loan Agreement is hereby deleted in its
                  entirety and replaced with the following:

                  "SECTION 5.4 REMOVAL OF MORTGAGE NOTES. In the event that
                  Borrower does not sell a Mortgage Note to a Purchaser or
                  First Union has not received the full Purchase Price from the
                  Purchaser with (a) twenty-five (25) days from the date First
                  Union advances funds to Borrower to finance the Mortgage Loan
                  as evidenced by such Mortgage Note, then Borrower, promptly
                  following the request of First Union, shall remove such
                  Mortgage Note and Mortgage from the Collateral and repay the
                  outstanding principal balance of the Loan, in accordance with
                  Section 2.2 by an amount equal to the amount advanced by
                  First Union for any Mortgage Loan evidenced by such removed
                  Mortgage Note and Mortgage."

         11.      Section 7.1.18 of the Loan Agreement is hereby deleted in its
                  entirety and replaced with the following:

                  "SECTION 7.1.18 FUTURE PURCHASERS. Before selling Mortgage
                  Loans to Purchasers who are not Purchasers as of the closing
                  date of the Loan, Borrower will submit the names of such
                  potential Purchasers and any other information reasonably
                  required by First Union to First Union for approval, in its
                  sole reasonable discretion, and upon receipt of approval of
                  the potential Purchasers by First Union, shall require each
                  such Purchaser to execute a Bailee Agreement prior to the
                  sale of any Mortgage Loan to such potential Purchaser."

         12.      Section 9.1(a) is hereby deleted in its entirety and replaced
                  with the following:

                  "(a) if Borrower fails to pay any amount due to First Union
                  on its due date under the Note or this Agreement or otherwise
                  be in default under the Note, except that if failure to pay a
                  principal payment when due in accordance with Article V is
                  caused by a Purchaser's failure to purchase a Mortgage Loan
                  (which failure to purchase is not directly or indirectly the
                  fault of Borrower or a result of Borrower's actions),
                  Borrower shall not be in default unless such principal
                  payment is not made within fifteen (15) days from the date on
                  which such principal payment is due.

         13.      Section 13.2 is hereby deleted in its entirety and replaced 
                  with the following:

                  "SECTION 13.2 RELEASE.  Borrower acknowledges and agrees that
                  First Union shall have no liability to Borrower or any other
                  person for failure of a Purchaser to purchase a Mortgage
                  Note."

         14.      Exhibit A to the Loan Agreement, the "Bailee Agreement", is
                  hereby amended as set forth on Exhibit A attached hereto. Any
                  bailments made following the date hereof shall be subject to
                  such amended Bailee Agreement.

         15.      All Loan Documents are hereby modified to the extent
                  necessary such that any reference to the "Loan Agreement"
                  shall refer to the Loan Agreement as modified hereby.

         16.      Borrower and RSI hereby represent and warrant that, at the
                  time of the execution and delivery of this Agreement,
                  Borrower and RSI are in compliance with their respective
                  covenants set forth in

<PAGE>   4

                  the Loan Agreement and Borrower hereby confirms that the
                  representations and warranties set forth therein continue to
                  be true and accurate, except that Borrower owns all of the
                  issued and outstanding stock of HomeAdd Financial Services
                  Corp., a North Carolina corporation.

         17.      Borrower agrees to hold First Union harmless and indemnify
                  First Union and its successors and assigns from any and all
                  claims or causes of action arising in connection with this
                  Amendment or otherwise related to the Loan (including without
                  limitation, court costs and reasonable attorneys fees), other
                  than those resulting from or caused by First Union's gross
                  negligence or recklessness. Borrower also acknowledges that
                  the Indemnity and Release language set forth in Article XIII
                  of the Loan Agreement shall remain in full force and effect
                  following the date hereof, except as modified hereby.

         18.      Borrower agrees to execute and deliver to First Union,
                  promptly upon request from First Union, such other and
                  further documents as may be reasonably necessary or
                  appropriate to consummate the transactions contemplated
                  herein.

         19.      This Amendment may be executed in two (2) or more
                  counterparts, each of which shall be deemed to be an
                  original, but all of which shall constitute one and the same
                  instrument, and in making proof of this Amendment, it shall
                  not be necessary to produce or account for more than one such
                  counterpart.

         20.      This Agreement is not a novation and except as otherwise
                  modified hereby, the terms and provisions of the Loan
                  Agreement and all Loan Documents shall remain in full force
                  and effect and shall continue to be secured by the Collateral
                  with the same force, effect and priority.

         21.      RSI hereby reaffirms its obligations arising under the
                  Capital Contribution Agreement and acknowledges that the
                  Capital Contribution Agreement shall continue in full force
                  and effect following the execution of this Amendment.

<PAGE>   5


         IN WITNESS WHEREOF, the parties have executed this Agreement to be
effective as of the date first written above.


                                             HomeAdd Financial Corporation

                                             /s/ Matthew J. Marron, Jr.
                                             ----------------------------------
                                             By: Matthew J. Marron, Jr.
                                             Its: President


                                             RSI Holdings, Inc.


                                             /s/ Buck A. Mickel
                                             ----------------------------------
                                             By:  Buck A. Mickel
                                             Its: Vice President


                                             First Union National Bank


                                             /s/ Charles P. Cecil
                                             ----------------------------------
                                             By:  Charles P. Cecil
                                             Its: Senior Vice President


<PAGE>   6
                                                       
                                                       DRAFT DOCUMENT 11/12/97
                                                     

                                   Exhibit A

                                BAILEE AGREEMENT


         THIS BAILEE AGREEMENT is entered into by and among First Union  
National Bank ("Lender"), HomeAdd Financial Corporation (f/k/a CambridgeBanc,
Inc.) ("Seller"), and , ("Buyer").

         WHEREAS, Seller may, from time to time, originate and close
residential mortgage loans (each, a "Mortgage Loan"); and

         WHEREAS, each Mortgage Loan will be evidenced by a promissory note
(each, a "Mortgage Note") and secured by a mortgage or certain other documents
(collectively, together with each Mortgage Note, the "Collateral"); and

         WHEREAS, Seller may obtain monies from Lender to fund such Mortgage
Loans pursuant to a Loan Agreement dated December 12, 1996, among Lender,
Seller and RSI Holdings, Inc., as the same may be amended from time to time
("Loan Agreement"), and will grant Lender a security interest in the Collateral
securing such Mortgage Loans; and

         WHEREAS, Seller intends to sell certain closed Mortgage Loans to 
Buyer and

         WHEREAS, Lender has requested that Buyer act as Lender's bailee with
respect to such Collateral until the related Mortgage Loan is purchased by
Buyer.

         NOW, THEREFORE, in consideration of the agreements set forth herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Lender, Seller, and Buyer agree as follows:

         Section 1. Notification and Acknowledgment of Security Interest.
Seller shall attach to each shipment to Buyer of one or more Mortgage Notes a
cover letter, substantially in the form of Exhibit A attached hereto, that: (a)
references this Bailee Agreement, and (b) acknowledges that each related
Mortgage Loan is subject to Lender's security interest. Seller, shall promptly
forward such cover letter and Mortgage Note(s) and other Collateral related
thereto to Buyer at the following address (or such other address as may be sent
in writing by Buyer to Seller and Lender):




                           Attn:

Immediately upon receipt, and not later than seventy-two (72) hours following
receipt of a Bulk Purchase, Buyer shall sign and date such cover letter and
shall mail and telefax it to Lender at the following address or number (or such
other address or number as may be sent in writing by Lender to Buyer and
Seller):

                  Lender:     First Union National Bank
                              1 Beattie Place
                              Greenville, South Carolina 29602
                              Attention:  Linda G. Burroughs
                              Telefax:    (864) 255-8261
                              Telephone:  (864) 255-8337

<PAGE>   7

For the purposes hereof, a "Bulk Purchase" shall mean the purchase by Buyer of
more than one (1) Mortgage Loan on the same date from Seller. The Mortgage Loan
file shall not be deemed complete until the receipt by Buyer of the original
executed Mortgage Note endorsed in blank or to Buyer, together with the other
documents required by the Loan Agreement. Such cover letter, when executed by
Buyer, shall constitute acknowledgment by Buyer of Lender's security interest
in the related Collateral, provided, however, that the failure of Buyer to
acknowledge such cover letter shall not impair or affect the enforceability of
this Bailee Agreement or of Lender's lien on the related Collateral evidenced
hereby. Borrower shall not be required to return a cover letter to Lender for a
non Bulk Purchase.

         Section 2. Buyer as Bailee. Effective upon Buyer's receipt of the
Collateral and the cover letter described in Section 1 above, Buyer will hold
the Collateral, in which Lender holds a security interest, as bailee for the
benefit of Lender, pursuant to the provisions of the Uniform Commercial Code,
as adopted in the State of South Carolina, until Buyer's status as bailee is
terminated as set forth in Section 3 hereof. Prior to such termination, Buyer
shall not deliver the Collateral to Seller or any third party. Buyer shall act
only as a bailee for Lender and shall not be deemed to be a representative,
trustee, or fiduciary or otherwise an agent of or for Lender or Seller with
respect to the Collateral. The standard of care to be exercised by Buyer in
holding the Collateral shall be the same degree of care and skill as Buyer
exercises when it holds Mortgage Loan documents on its own behalf.


         Section 3. Termination of Security Interest and Release of Bailee.
Buyer's status and obligations as bailee shall automatically terminate, without
further action by any party, upon the earliest to occur of: (i) payment of the
Purchase Price to Seller, as set forth in Section 4 hereof (the "Purchase
Date"); or (ii) return of the Collateral to Lender, as set forth in Section 5
hereof. Lender agrees that its security interest in the Collateral and that all
right, title, and interest it may have in each related Mortgage Loan purchased
by Buyer are and shall be fully released effective as of the Purchase Date,
whereupon Buyer will have no further obligations to Lender with respect to such
Collateral.

         Section 4. Purchase Price. The "Purchase Price" means the price Buyer
agrees to pay to purchase a Mortgage Loan. Lender and Seller acknowledge that
the Purchase Price may be less than the full principal amount of the Mortgage
Note evidencing the Mortgage Loan, and that Seller may have paid or advanced
other funds to Buyer which funds are not included in the Purchase Price. Buyer
agrees that the Purchase Price paid to Seller with respect to a particular
Mortgage Loan shall not be reduced due to adjustments relating to another
Mortgage Loan. For purposes of the Purchase Date set forth in Section 3 hereof,
the Purchase Price shall be deemed paid in full when either: (a) Seller
collects funds in the amount of the Purchase Price pursuant to a cashiers check
mailed to Seller's address set forth in Section 7 below from Buyer and deposits
such check in its account with Lender referenced hereinbelow (or any other
account designated by Lender); (b) Seller receives a federal wire transfer in
the amount of the Purchase Price into its account with Lender referenced
hereinbelow (or any other account designated by Lender) from Buyer:

                       Bank: First Union National Bank of South Carolina
                       Address: 1 Beattie Place, Greenville, SC 29602
                       ABA Number: 053207766

<PAGE>   8

                     Account: 2010000314483 (note, this account # may change as
                     of January  1997  contact First Union for confirmation of 
                     account #)
                     Attention: Linda G. Burroughs

or (c) Seller collects funds in such other manner as requested by Lender and
such funds are deposited in the account with Lender referenced hereinabove (or
any other account designated by Lender). Seller agrees promptly to process and
submit any such cashiers check received from Buyer for payment to Lender. Buyer
shall not be liable to Lender or Seller for any additional expenses incurred by
Lender or Seller because of: (i) payments lost or delayed due to incorrect wire
transfer or mailing instructions provided by Seller; (ii) Seller's failure
promptly to process a cashiers check; or (iii) Lender's failure to promptly
submit a cashiers check for payment. Buyer shall notify Seller of the purchase
of a Mortgage Loan by sending a funding advice to Seller, and, upon Lender's
request, Seller shall promptly telecopy such funding advice to Lender.

         Section 5. Return of Collateral to Lender. Buyer will deliver the Note
and other Collateral in Buyer's possession to Lender: (a) upon receipt by Buyer
of Lender's written request therefor (provided that such request is received by
Buyer prior to Buyer's payment of the Purchase Price to Seller); or (b)
promptly, in the event that Buyer elects not to purchase the Mortgage Loan, or
in the event that the Mortgage Note or other Collateral is defective and
requires correction. In the alternative, Buyer shall take such other action
with respect to the Note and other Collateral as may be agreed upon in writing
between Lender and Buyer with notice to Seller. Any delivery from Buyer to
Lender shall be made by express mail to the address of Lender set forth in
Section 1 hereof. In no event shall Buyer return any item of Collateral to
Seller prior to the termination of Lender's security interest in the
Collateral.

         Section 6. Representation and Warranties.

(a)      As of the date of delivery of each Mortgage Loan to Buyer:

         (i)   Lender represents and warrants to Buyer that (A) Lender has not
         assigned, hypothecated, transferred, pledged, or otherwise conveyed
         the Collateral to any other party, or recorded any assignment of
         mortgage or deed of trust relating to such Mortgage Loan, and (B)
         during the period that Buyer holds the Collateral as bailee, unless
         and until the Collateral is returned by Buyer to Lender, Lender will
         not assign, hypothecate, transfer, pledge, or otherwise convey any of
         Lender's right, title, or interest in such Collateral; nor will Lender
         need or cause to be needed any assignment of mortgage or deed of trust
         relating to such Mortgage Loan;

         (ii)  Seller certifies to Buyer that the documents relating to each
         Mortgage Loan purchased have been delivered to Buyer by Seller or
         Seller's closing agent (except for any loan and security agreement
         between Lender and Seller, and any unrecorded assignment of a mortgage
         or deed of trust) ; and

         (iii) Lender's execution and delivery of this Bailee Agreement have
         been specifically approved by Lender. This Bailee Agreement
         constitutes the "written agreement" governing Lender's rights and
         obligations with respect to Buyer in connection with Lender's role as
         Seller's warehouse lender for the Mortgage Loans, and Lender shall
         continuously maintain all components of such "written agreement" as an

<PAGE>   9

         official record of Lender or any successor thereof that Lender owns or
         controls.

(b)      Immediately following payment of the Purchase Price for a  particular  
         Mortgage Loan as described in Section 4 hereinabove, Lender represents
         and warrants that (i) Lender has fully relinquished all right, title,
         and interest it may have in and to such Mortgage Loan; (ii) all notes,
         mortgages, and other original documents, instruments, and materials
         that have been delivered to Buyer pursuant to subsection 6(a)(ii)
         above have been released to Buyer; and (iii) any unrecorded
         assignments in Lender's possession relating to such Mortgage Loan are
         null and void, and Lender covenants to and agrees with Buyer that
         Lender immediately will take any and all action necessary to assign
         and transfer any recorded interest in such Mortgage Loan to Buyer.

         Section 7. Notices. Any notices sent to Buyer or Lender pursuant to
this Agreement shall be sent to the address applicable in accordance with
Section 1 of this Agreement, and any notices sent to Seller pursuant to this
Agreement shall be sent to Seller at the following address (or such other
address as may be sent in writing by Seller to Buyer and Lender):


                           HomeAdd Financial Corporation
                           Post Office Box 17918
                           Greenville, South Carolina 29606
                           Attention: Matthew J. Marron, Jr.

         Section 8. Counterparts. This Bailee Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and
the same instrument, and any of the parties hereto may execute this Bailee
Agreement by signing any such counterpart.







                         [SEE SIGNATURE PAGE ATTACHED]


<PAGE>   10


         IN WITNESS WHEREOF, each of the undersigned has caused this Bailee
Agreement to be duly executed and delivered by its duly authorized officer as
of ________________, 19_____.


LENDER:  First Union National Bank
By:
Name:
Title:


SELLER: HomeAdd Financial Corporation

By: /s/ Matthew J. Marron, Jr.
    --------------------------- 
Name:  Matthew J. Marron, Jr.
Title: President


BUYER:

By:
Name:
Title:

<PAGE>   11



                         Exhibit A to Bailee Agreement

                           WAREHOUSE LENDER'S LETTER

                                                                           Date:




Attention:  Residential Mortgages - Conduit

Dear______________________________:

Promissory Notes and all other documents evidencing the below-listed loans are
attached hereto and are being delivered to ("________ "), in _________ capacity
as bailee for First Union National Bank ("Lender"), pursuant to the Bailee
Agreement dated ____________ , 199___ (the "Bailee Agreement"), among Lender, as
warehouse lender, HomeAdd Financial Corporation (f/k/a CambridgeBanc, Inc.), as
Seller, and , as Buyer. Lender holds a security interest in such Promissory
Notes, Mortgage and all documents related thereto.

         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:

         Loan #                                          Name:________________
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:
         Loan #                                          Name:


Execution of this letter shall constitute Buyer's agreement that it will; (i)
send or cause to be sent to Seller payments relating to the above-referenced
Promissory Notes as specified in Section 4 of the Bailee Agreement within
twenty-five (25) days of receipt of this letter; or (ii) in the alternative,
return such Promissory Notes and other documents to Lender as specified in
Section 5 of the Bailee Agreement within ten (10) days of receipt of this
letter.

                                    Sincerely,

                                    HomeAdd Financial Corporation


                                    Name:
                                    Title:


<PAGE>   12

The undersigned hereby acknowledges receipt of this letter and the
above-referenced Promissory Notes and other documents, and that the undersigned
will hold such Promissory Notes and other documents as bailee on behalf of the
above-referenced Lender, subject to Lender's security interest therein and the
terms and conditions of the Bailee Agreement.



By:
Name:
Title:

By:
Name:
Title: