Based in Texas Colonial Savings, FA has decided to leave the manufacturing business in the midst of one of the most challenging cycles in decades, caused by State reservestightening of monetary policy and banking crisis.

The company will focus on full banking services and mortgage business, it announced on Thursday.

The origination activities will cease effective July 31, 2023, but all outstanding mortgage loans will continue to be serviced in accordance with the terms and conditions of the agreement. Users can expect unhindered access to their accounts, the company said.

Colonial Savings, a federally chartered thrift founded in 1952, originated $470 million in mortgage loans in the past 12 months, according to the mortgage technology platform Modek. However, its monthly output fell by a third during this period as the market faced rising mortgage rates and low inventory levels.

The company had 53 active loan officers and 30 branches, according to data from Modek. According to its website, Colonial offered fixed-rate loans, Federal Housing Administration (FHA) loans, US Department of Veterans Affairs (VA) loans, adjustable rates and home equity, among others.

The company, which operates a network of six consumer and commercial banks in North Central Texas, claims to have a $20 billion service portfolio.

As announced by the company, the decision to leave the production business was made in light of changing market dynamics and a strategic assessment of its business.

“We strongly believe this is the right course of action for the company’s future,” Dave Motley, president of Colonial Savings, FA, said in a statement.

By Editor

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