David Frase, executive vice president in charge of warehouse lending at Southwest Securities FSB, Dallas, has left the company, industry officials confirmed to ASR's sister publication National Mortgage News.
At press time a spokesman for the Federal Deposit Insurance Corp.-insured bank declined to comment but said the company is still committed to the business.
Advisors that work in the sector said the bank, while staying in the sector, recently cut back the size of its lines to many customers. One advisor, requesting his name not be used, said he had a client who requested an increase in its warehouse line but instead had the LOC cut in half.
The client was told that the cutbacks were due to writedowns at the bank and were unrelated to the warehouse business. A few days ago, SWS Group, the parent company, reported a slight loss in its most recent fiscal quarter, citing a $45.1 million "loan loss provision in the banking segment."
SWS said the loss was driven by "market conditions in Texas" and a "subsequent deterioration in the bank's commercial real estate portfolio."