Posted: 07/05/2012 01:00:00 AM MDT
Colorado-based Aurora Loan Services LLC has begun to transfer its servicing following its acquisition by Nationstar, a Texas-based mortgage company that agreed to buy the company.
On Friday, Lehman Brothers Holdings announced the completion of the sale of substantially all of the assets and insured deposits of its subsidiary, Delaware-based Aurora Bank FSB, a move that was expected to help funnel some $1.5 billion to creditors of Lehman, which filed for bankruptcy in 2008.
The sale included all of the mortgage-servicing rights owned by the bank and its wholly owned subsidiary, Aurora Loan Services.
Lone Tree-based Aurora Loan Services once was a major player in the nonprime-mortgage market, allowing low down payments and requiring little or no income documentation — risky lending practices that ultimately brought down Lehman and set off a global
Although not required as part of Friday's transaction, "some of Aurora's employees are going to be taking jobs at Nationstar," said Lehman Brothers spokeswoman Kimberly Macleod.
It was not known, however, how many of ALS's 1,400 employees would be retained. It was also unclear how many employees remain at the Lone Tree facility.
Officials of Aurora Loan Services and Nationstar did not respond to repeated phone messages left and e-mails sent by The Denver Post.
On Tuesday, employees at the Lone Tree headquarters were scurrying to make the transition. Stacks of new, white photo ID cards, emblazoned with "Nationstar," were assembled on a desk in the lobby, waiting to be distributed to employees.
The company's website said most loans are transitioning to Nationstar in Lewisville, Texas, and some to Selene Finance in Houston.
Category: Payday loans