Colonial Savings F.A. has announced it will be exiting the mortgage origination business as of July 31.
The Fort Worth, Texas-based thrift said it would continue to provide mortgage servicing along with the remainder of its full-service banking offerings. Colonial Savings has a servicing portfolio of approximately $26 billion and total assets exceeding $1 billion.
The company’s origination business has its roots in Fort Worth Mortgage, which was founded in 1952 by James “Jimmy” DuBose with the goal of providing provide residential home loans to the growing post-war communities of North Texas. DuBose purchased Colonial Savings, a thrift located in Lewisville, Texas, in 1972.
In a press statement, the company said that its decision to cease mortgage originations was based on “changing market dynamics and a strategic evaluation” of its operations.
“We are deeply grateful to our employees, customers and partners for their unwavering support and loyalty throughout the years,” said Dave Motley, president of Colonial Savings. “It is with a heavy heart that we make this difficult decision, but we firmly believe it is the right course of action for the company’s future.”
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