Aurora's servicing deal with Fed sheds new light on Lehman Brothers
Aurora Bank is the former loan origination and servicing unit of Lehman Brothers, which entered into bankruptcy back in 2008.
Antoine Gara with TheStreet revealed an interesting back-story to Aurora's agreement to settle with federal regulators over its foreclosure practices this week. Aurora is among 10 servicers that agreed to settle. The settlement replaced ongoing independent foreclosure reviews.
It is during Lehman's multi-year bankruptcy process when Aurora's improper foreclosure practices appear to have occurred. The Fed and OCC settlement states that the foreclosure review is for actions taken between 2009 and 2010, when Aurora was being managed by the Lehman Brothers estate, restructuring specialist Alvarez & Marsal.