Lehman Cuts 1,300 at Aurora; Will Exit Wholesale, Correspondent Lending
Lehman Brothers today said that it will suspend wholesale and correspondent originations at its Aurora Loan Services subsidiary, citing "dislocation in the mortgage markets." Aurora will continue to originate via direct lending, and servicing will remain intact, according to a press statement released Thursday. The move will affect 1,300 employees and will result in the closure of Aurora's regional operations centers in Lake Forest, CA, Sunrise, FL, and Florham Park, NJ. Aurora's Colorado operations will be consolidated at its Littleton office, Lehman said. â€œWhile it was necessary for us to structure our mortgage origination businesses in the U.S. to reflect the change in industry dynamics, we deeply regret the impact this action has on our people,â€? said Ted Janulis, global head of mortgage capital for Lehman Brothers. â€œWe will continue to make technology and infrastructure investments in this space, as we reposition the business to reflect the changing industry.â€? The Wall Street firm last made cuts to its mortgage banking operations in September, when it trimmed 850 positions in both the U.S. and the UK.