Lehman Cuts Jobs At Aurora and BNC
Lehman Brothers has trimmed roughly 300 workers from two of its nonprime mortgage affiliates - Aurora Loan Services of Colorado, and BNC Mortgage, Irvine, Calif., industry officials confirmed to Mortgage Servicing News.
The cuts came in late January just as went to press.
ALS, the nation's top alt-A lender, funds 99% of its production through wholesale and correspondent channels.
BNC Mortgage, which is based in Irvine, ranks seventh among subprime wholesalers and 14th overall.
A majority of the layoffs came at ALS, sources said, but BNC - which merged with Lehman wholesaler Finance America this past fall - also was affected.
There also has been talk of closing an ALS/Lehman mortgage office in Irvine. "They're going to wind down that office in 90 days," said one lending executive who also said he is receiving resumes from freshly fired ALS workers in Southern California.
Lehman would not comment for the record but a source familiar with the matter confirmed there were layoffs, blaming them on reduced production volumes in the industry and the "downward side of the mortgage cycle."
In the third quarter, ALS funded $14.07 billion in alt-A loans, ranking first nationwide, according to the Quarterly Data Report. ALS also serviced $78.7 billion of home loans as of the end of last year, making it the nation's 17th largest servicer, according to MSN's Quarterly Data Report.
Snapshot: Mortgage Industry Jobs
Oct. '05 504,300
Nov. '05 502,300
Dec. '05 500,900
Source: U.S. Labor Department
(c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com