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Aurora Loan Services in Limbo after Lehman Fails.

Mortgage Servicing News

| November 01, 2008 | COPYRIGHT 2008 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Washington-Aurora Loan Services of Colorado is in doubt with the bankruptcy of its parent, Lehman Brothers. Investment bankers interviewed last month expect that ALS, a subprime/specialty servicer, will be sold in the coming months.

"Investors are looking at specialty servicers," said one New York-based advisor. "They'll have lookers."

According to figures compiled by the Quarterly Data Report, Aurora is the nation's largest servicer of alt-A loans with receivables of $83.9 billion at midyear.

About nine months ago ALS pulled the plug on its wholesale and correspondent divisions.

Barclays PLC, London, has agreed to pay an estimated combined price of 1 billion pounds ($1.75 billion) for three of the bankrupt Lehman Brothers' New York-area ...

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Source: HighBeam Research, Aurora Loan Services in Limbo after Lehman Fails.

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