There are reports that Colonial BancGroup is near collapse, and desperately attempting to sell itself off to BB&T.
If it fails, it would be the largest failure so far this year, and the 6th largest bank failure ever.
Of note is the fact that if the bank fails, then about 25% of all “warehouse lending” goes away.
Warehouse lending is a form of short term lending used most often by folks like independent mortgage brokers.
There would be some real repercussions here in the housing market, even with independent brokers having a much smaller piece of the pie than they did 3 years ago.