Lehman Has No Takers for Aurora
February 2, 2009
Lehman Brothers Holdings — which filed for bankruptcy protection back in the fall — has been shopping around its Alt-A servicing division in recent months but with no takers.
At one point the unit, Aurora Loan Services of Colorado, had $120 billion in servicing rights on its books. It's unclear how much of that portfolio is servicing versus subservicing contracts. ALS was both a funder and servicer of Alt-A loans but also had ventured into subprime in recent years.
One investment banker, requesting anonymity, said ALS is housed under Lehman Brothers Bank FSB of Delaware, which was not a party to the bankruptcy.
A few years back Lehman hired away CEO Tom Wind from Chase Home Finance to manage its mortgage operations. A spokeswoman for Lehman in New York had not returned a telephone call at press time.
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