Origination/Lending
Lehman Cuts 850 As Part of Mortgage Restructuring; Consolidates Mortgage Operations
By PAUL JACKSON
September 6, 2007 11:29 AM CST
Lehman Brothers said this morning that it has eliminated 850 positions in the U.S. and UK amid a restructuring of its mortgage business, a move that the investment bank said “sizes the business appropriately for the current market environment.” The company also said it is closing its Korean mortgage business.
No details were given on what percentage of the 850 cuts were centered in the company’s US-based operations.
The company also said that its residential mortgage origination and servicing businesses in the U.S., Japan and Europe — including Aurora Loan Services, Libertus and ELQ Hypotheken — will now operate under the name Lehman Mortgage Capital.
From today’s press statement:
“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,’’ said Ted Janulis, global head of Mortgage Capital for Lehman Brothers. “In addition, we will continue to look at other origination opportunities in global markets.”
Lehman announced last month that it would close subprime outfit BNC Mortgage amid unabating troubles in the subprime mortgage market, a move that trimmed 1,200 jobs.
Print This Article
recent stories by department
Origination/Lending
Secondary Market/Investors
Get your HW Fix
Join nearly 10,000 bold subscribers who already get our daily email delivered to their inbox -- it's free, and a great way to ensure you don't miss something.
Events
2009 Jul 09 -- 2009 Jul 10
USFN Legal Issues in Mortgage Servicing Seminar
Geared towards in-house counsel, designed to discuss current legal issues in the mortgage servicing industry and real estate finance. Closed event in Chicago, Ill.; for more information, visit www.usfn.org.
2009 Oct 04 -- 2009 Oct 05
IMN's 15th Annual ABS East
Hosted at the Foutainebleau Resort Miami Beach in Miami, FL, the theme of this year's event is "Navigating a Path to Recovery" and alludes to decisive actions by the government and industry leaders to set a course that will hopefully lead to a revived and robust US securitization market. For more information, visit www.img.org.
2009 Oct 20 -- 2009 Oct 21
RMBS: Assessing Value and Risk
This two-day course in Washington, DC will equip market participants with the knowledge and skills to evaluate prime, Alt-A and subprime RMBS portfolios in order to assess their value and understand inherent risks. For more information, visit www.fitchratings.com.
