BNC Mortgage Shutdown By Lehman Brothers

On Wednesday Lehman Brothers announced the shutdown its subprime mortgage subsidary BNC Mortgage LLC.   As a result of discontinuing the business, 1,200 employees across 23 offices will be fired.  Lehman Brothers will record a $25 million charge related to severance pay, real estate and technology costs.  Lehman will also record a $23 million charge relating to a write down of goodwill.

In response to the announcement the BNC Mortgage LLC website says:

Dear valued clients: BNC Mortgage LLC’s parent company, Lehman Brothers, announced today that market conditions have necessitated a substantial reduction in its resources and capacity in the subprime mortgage origination space. As a result, Lehman Brothers is closing BNC Mortgage. The Firm will continue to originate mortgages in the U.S. through its Aurora Loan Services LLC platform.

BNC Mortgage is no longer accepting new loan submissions and will be returning any loan files that have not already been approved. We will continue to move forward with applications that have been approved. Please contact your AE or the local or regional Operations center regarding any approved applications in process.

We truly appreciate your business and support over the years and we are disappointed we will not be working with you any longer. If you have not already done so, we hope you will consider how Aurora Loan Services may be able to help you meet your customers’ needs in the future.

We truly appreciate your business and support over the years and we are disappointed we will not be working with you any longer. If you have not already done so, we hope you will consider how Aurora Loan Services may be able to help you meet your customers’ needs in the future. With sincerest thanks.

This entry was posted on Wednesday, August 22nd, 2007 at 3:27 pm and is filed under Crashed. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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