Lehman Brothers Suspends Wholesale and Correspondent Originations

Lehman Brothers, headquartered in New York, says it is suspending its wholesale and correspondent lending activities at its Aurora Loan Services subsidiary. Aurora will continue to originate loans through its direct lending channel and maintain its servicing business.

This action affects approximately 1,300 employees and will result in the closure of Aurora's regional operations centers in Lake Forest, Calif.; Sunrise, Fla.; and Florham Park, N.J. Colorado operations will be consolidated at the Littleton, Colo., office.

In connection with the suspension of its wholesale and correspondent U.S. residential mortgage activities, Lehman Brothers will record a one-time, after-tax charge of approximately $40 million for severance, technology and facilities exit costs.

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