Aurora Loan Services, Denver, on Friday finally made it official – the troubled mortgage firm will no longer accept new loan registrations or locks, but will continue to service its current mortgage customers.
According to a posting on the ALS website, the national mortgage lender is also shuttering its Chesterfield, Mo.-based correspondent lending unit. In a filing with the Missouri Department of Economic Development Thursday, Aurora said that it would shut down its Chesterfield office at the end of April and that 146 employees would be laid off as a result.
ALS, once a giant in alt-A lending, is part of Aurora Bank FSB of Wilmington, Del.
National Mortgage News first reported the news of the production shutdown two weeks ago. The firm's $66 billion servicing portfolio is currently on the auction block and according to investment banking sources, Nationstar Mortgage, Lewisville, Texas, is believed to be the leading bidder at this point.
Nationstar is owned by the publicly traded Fortress Investment Group, a firm that until recently was headed by former Fannie Mae CEO Daniel Mudd.
Nationstar last year filed an S-1 statement with the Securities and Exchange Commission, signaling its intention to go public.
Among all servicing firms, ALS ranks 17th nationwide, according to figures compiled by NMN and the Quarterly Data Report.
ALS and its bank parent were once part of Lehman Brothers but avoided being thrown into bankruptcy. The Lehman trustee has ordered that the two be sold this year.
Aurora Bank reported losing $83 million in 2011, compared with a profit of $150 million in 2010, according to data from the Federal Deposit Insurance Corp.
At Dec. 31, residential loans made up roughly 77% of the company's loan and lease portfolio and roughly 17% of its loans were at least 90 days past due, according to the FDIC.
