Texas-based Colonial Savings FA has made the decision to stop its origination business due to challenging market conditions caused by the Federal Reserve’s tight policy and banking crisis. The company will now concentrate on full-service banking and mortgage repayment operations. While its structuring activities will end on July 31, 2023, the outstanding mortgages will still be available, according to the terms of the agreement. Customers will not face any obstruction regarding their accounts.
Colonial Savings is a federally chartered savings company established in 1952. In the past 12 months, it has originated $470 million in mortgages. However, during this period, monthly production fell by one third because of a rise in mortgage rates and lower inventory levels. The company had 53 active loan officers and 30 branches, offering a diverse range of loans like fixed-rate loans, Federal Housing Administration (FHA) loans, U.S. Veterans Administration (VA) loans, variable-rate loans, home equity, and more. Colonial operates six consumer and commercial banks in North Central Texas, holding a $20 billion services portfolio.
The company’s decision to leave the origination business was motivated by a strategic assessment of its business operations and changing market dynamics. “We strongly believe this is the right move for the future of the company,” said Dave Motley, president of FA Colonial Savings.