Lehman Rejigs Mortgage Biz, Cuts 850 Jobs

Lehman Brothers on Thursday trimmed 850 mortgage jobs from its global operations as part of an overall restructuring of that business.Sources say most of the job cuts came in the United States and are production-related. Lehman is closing its Korean mortgage unit but will continue to provide mortgage capital in the United States, the United Kingdom, Japan, and the Netherlands. It will also change the name of its alternative-A unit, Aurora Loan Services of Colorado, to Lehman Mortgage Capital. Last month Lehman closed its California-based BNC Mortgage subprime division. Aurora is funding mostly alt-A loans but could re-enter the subprime market if conditions there improve, said an official close to the company. Ted Janulis, chief of global mortgage capital for Lehman said, "While these moves are extraordinarily difficult because of the impact they have on our people, we now have a business that is sized correctly for the current environment and positioned for long-term success."