Aurora Loan Services in Limbo after Lehman Fails
Washington-Aurora Loan Services of Colorado is in doubt with the bankruptcy of its parent, Lehman Brothers. Investment bankers interviewed last month expect that ALS, a subprime/specialty servicer, will be sold in the coming months.
"Investors are looking at specialty servicers," said one New York-based advisor. "They'll have lookers."
According to figures compiled by the Quarterly Data Report, Aurora is the nation's largest servicer of alt-A loans with receivables of $83.9 billion at midyear.
About nine months ago ALS pulled the plug on its wholesale and correspondent divisions.
Barclays PLC, London, has agreed to pay an estimated combined price of 1 billion pounds ($1.75 billion) for three of the bankrupt Lehman Brothers' New York-area facilities and for certain of Lehman's North American businesses - including the New York-based company's partially mortgage-related fixed-income sales, trading and research unit.
Barclays said it plans to pay an estimated 800 million pounds ($1 billion) for Lehman's head office in New York as well as two data centers in New Jersey. It also is set to pay just 140 million pounds ($250 million) for Lehman's North American investment banking and capital markets businesses.
The North American Lehman businesses that Barclays plans to buy have about 10,000 employees, trading assets with a current estimated value of £40 billion ($72 billion) and trading liabilities with a current estimated value of £38 billion ($68 billion), according to Barclays.