Eight months ago Southwest Bank of Fort Worth, Texas, had no warehouse lending commitments on its books. Today that figure stands at $80 million and growing.
“We started lending in December,” said David Frase, president of warehouse lending for the bank. “Our focus is on smaller mortgage banking firms.”
To date, almost all of the bank’s loans have been concentrated in Texas, but recently the company’s board of directors approved a plan to lend nationally with the exception of New York. “Any state but New York,” said Frase. “The escrow laws there are a problem.”
And like many warehouse banks, Southwest is gaining applications from nonbanks that are looking for new lines in the wake of Ally Financial’s exit from the market. “A couple of Ally’s clients have filed applications with us,” said Frase.
Southwest is a privately held bank. Frase joined the lender last year.
