Aurora Loan Services to Start Loaning Again

October 21, 2009 No Comments »

coming soon

It seems as if we’re moving through a positive news cycle at the moment, with foreclosures now expected to abate and earnings ringing in at banks across the nation.

Adding to that optimism is news that mortgage lenders are coming back from the dead, with Lehman Brothers’ Aurora Loan Services reportedly re-launching, according to Bloomberg.

While its parent continues to go through the largest bankruptcy in history, Aurora Loan Services (ALS) is apparently eyeing a return to loan origination via, you guessed it, FHA mortgages.

Aurora, which used to offer Alt-A mortgages, has decided to take the less risky route in light of decreased competition in the space, and per people familiar with the matter, is in the process of hiring staff to carry out those duties.

The company is expected to originate loans via retail, correspondent, and wholesale channels; it shut down multiple lending channels nearly two years ago, resulting in 1,300 layoffs.

The Littleton, Colorado-based company, which was not part of the Lehman Brothers bankruptcy, continued to act as a loan servicer throughout the mortgage crisis, and was the 14th largest as of June 30.

Throughout bankruptcy proceedings, Lehman has been lending to Aurora Bank, contributing assets, and buying its loans to avoid a regulatory seizure and protect a profitable business unit.

I wonder if Lehman will ever resurrect its subprime lending unit BNC Mortgage?

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