No Interest in ALS Servicing
New York-Lehman Brothers Holdings, which filed for bankruptcy protection last fall, has been shopping around its alt-A servicing division in recent months but with no buyers.
At one point, the unit, Aurora Loan Services of Colorado, had $120 billion in servicing rights on its books. It's unclear how fast that portfolio is running off and how much of the receivables there entail servicing vs. subservicing contracts.
"Aurora has been shopped by Lehman Holdings for the last several months," said one investment banker, "but there have been no takers that I'm aware of."
The investment banker, requesting anonymity, said Lehman was trying to sell the unit itself, without an outside advisor.
ALS was both a funder and servicer of alt-A loans but also had ventured into subprime in recent years. It also made conforming loans.
ALS is housed under Lehman Brothers Bank FSB of Delaware, which was not a party to the bankruptcy. (Several of Lehman's investment banking divisions were snatched up by Barclays Bank.)
A few years back, Lehman hired away CEO Tom Wind from Chase Home Finance to manage its mortgage operations. In 2008, ALS ranked 14th among all residential servicers, according to figures compiled by Mortgage Servicing News and the Quarterly Data Report.
A spokeswoman for Lehman in New York had not returned a telephone call as MSN went to press.
ALS still maintains a website and published a message to customers noting, "Aurora is not part of the Lehman Holdings Inc. bankruptcy filing.
"There are no changes to the way we service your loan or do business with you."