As the number of warehouse funding competitors dwindled over the past year, TierOne Bank in Lincoln, Neb., got a little picky.

Some of the smaller lenders that had revolving lines at the $3 billion-asset bank were shown the exit when TierOne began welcoming in bigger mortgage banks that came knocking to replace lost lines-of-credit. "We've had some borrowers who are just very small, and haven't adapted to the changes of the times," says a TierOne executive who asked not to be named. "So we sort of ease them out, and replace them with somebody who has a far bigger, more robust line of business."

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