David Frase, executive vice president in charge of warehouse lending at the thrift Southwest Securities has left the company, industry officials confirmed.
On Thursday a spokesman for Southwest, of Dallas, declined to comment but said it is still committed to the business.
Advisers who work in the sector said Southwest, while staying in the field, recently cut back the size of its lines to many customers. One adviser, requesting his name not be used, said he had a client who requested an increase in its warehouse line but instead had the line cut in half.
The client was told that the cutbacks were because of writedowns at Southwest and were unrelated to the warehouse business. SWS Group, Southwest's parent, on Monday reported it had a slight loss in its fiscal fourth quarter, citing a $45.1 million "loan-loss provision in the banking segment." SWS said the loss in the period, which ended June 25, was driven by "market conditions in Texas" and a "subsequent deterioration in the bank's commercial real estate portfolio."
