Mortgage Refinance News: Home Mortgage Refinance in Today's Market and Colonial's Aftermath.
By: Ed Ferrara
Lately it’s been tough to refinance your home. Underwriting is evolving changing by the week as new laws aimed to protect wall street from bad loans make it increasingly difficult for homeowners to refinance. Appraisals once inflated often now regularly come in under valued killing pre-approved refinance loans mid process.
The latest roadblock to home refinance savings is the collapse of Taylor Bean and Whitaker leading to the demise of Florida’s sixth largest bank and a major player in warehouse credit lines used by mortgage lenders to fund loans, Colonial Bank. Colonial’s failure is the fifth largest in U.S. history.
Analysts say Taylor Bean and Whitaker funded more loans than any other mortgage banker using a Colonial Bank warehouse line of credit. TB&W was one of the most popular lenders for mortgage brokers. They were also one of the last popular wholesale lenders left from the boom era. With the losses posted by Colonial’s mortgage sector last quarter you could say TB&W was a significant contributor to the demise of Colonial’s bottom line