Interest Rate Roundup

Thursday, January 17, 2008

Lehman exiting some origination businesses

Some breaking news out of Lehman Brothers -- it's suspending the wholesale and correspondent lending businesses at its Aurora Loan Services division. Aurora will still do direct lending and maintain its servicing operations. Some 1,300 employees will be let go, and facilities in CA, FL, and NJ will be closed.

Per National Mortgage News, Aurora was the third-largest Alt-A lender in the country as of Q3 2007, with $5.2 billion in volume (and $10.3 billion in the quarter before that, Q2 2007). The #1 Alt-A lender in the country -- IndyMac Bancorp, with volume of $12.6 billion in Q3 '07 and $15.3 billion in Q2 -- just announced some job cuts of its own. The firm said it would layoff just over 2,400 workers, or 24% of its total staff, and close facilities in FL, PA, MA, and SC.


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