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