Franklin American Mortgage Co. of Tennessee, a top 20-ranked lender, has suspended the origination of jumbo loans through brokers. In a memo to its broker clients, Andrew Taylor, the company's director of national sales, said, "Due to constricting secondary market options and continued lack of demand for conventional nonconforming (jumbo) products, FAMC is temporarily suspending this product offering." The non-bank lender said rate lock requests would be accepted if they were filed by close of business Wednesday, Aug. 12. It's believed that one of Franklin's warehouse lenders is the troubled Colonial Bancshares of Alabama. The company did not return a telephone call about the matter.
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