Lehman Brothers is suspending its wholesale and corespondent lending activities at its Aurora Loan Services subsidiary, based in Douglas County.
Aurora will continue to originate loans through its direct lending channel.
The move, which affects about 1,300 employees, will result in the closure of Aurora’s regional operations centers in Lake Forest, Calif.; Sunrise, Fla.; and Florham Park, N.J. Its Colorado operations, including locations in Englewood and Glendale, will be consolidated into the Douglas County office.
The company would not specify how many Colorado employees are affected.
The company will record a one-time, after-tax charge of about $40 million for severance, technology and facilities exit costs.
“While it was necessary for us to structure our mortgage origination businesses in the U.S. to reflect the change in industry dynamics, we deeply regret the impact this action has on our people,” Ted Janulis, global head of mortgage capital for Lehman Brothers, said in a statement. “We will continue to make technology and infrastructure investments in this space, as we reposition the business to reflect the changing industry.”
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
