Aurora Loan Services Closing - Confirmed

Update: It’s verified. I’ve received a deluge of emails from numerous sources since posting this. Thanks everyone.

Here’s just one email I received:

Auroraclosed the Wholesale and Correspondent divisions today. I am telling you this because it has been a pleasure working with you. A few items to note (as far as I understand them):

1. Loans need to registered and locked today and will have a 30 day close period (no extensions). If you have them, register them.
2. Please call your team as usual for loan updates and hopefully they can help you complete the loans in the 30 day period.
3. Enjoy life and try to get through this period in the business. If no, find more enjoyable work.

Here’s another:

I am writing today to inform you of Aurora’s decision to shut down its
Wholesale and Correspondent Lending divisions. Aurora will honor the
current pipeline as well as allow for any new submissions through end of
business tomorrow. Locks will be honored for the next 30 days.

It has been a great pleasure to work with you. After 5pm today I will
no longer have access to this email account. If you have any questions
please be sure to contact me today.

Here’s a copy of the press release issued by Lehman:

Lehman Brothers Suspends Wholesale and Correspondent U.S. Residential Mortgage Origination Activities

NEW YORK, January 17, 2008 ? Lehman Brothers announced today that it will substantially reduce its resources and capacity in the U.S. residential mortgage origination space in light of the dislocation in the mortgage markets. As a result, the Firm 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 will 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, CA, Sunrise, FL, and Florham Park, NJ. Aurora’s Colorado operations will be consolidated at its Littleton office. In connection with the suspension of its Wholesale and Correspondent U.S. residential mortgage activities, the Firm will record a one-time, after-tax charge of approximately $40 million for severance, technology and facilities exit costs.

Today’s traffic to our blog has been driven primarily by the search phrases “aurora loan services closing” and “aurora loan services layoffs.”

We’ve heard lots of unsubstantiated rumors that Aurora is indeed closing as of today; but we have not had anything substantiated from a verifiable source. If you have any information on the situation at Aurora please email me directly.

An email submitted to the Implode-O-Meter read as follows:

Dear brokers and loan officers,

It is with great regret to announce that Aurora Loan Services decided to close its doors effective immediately. The reasons behind this decision is more than evident considering the market situation.

Any files that have been submitted and locked with Aurora will be finalized. For those who want to submit a file, you will have until end of business day tomorrow to submit and lock the file for no more than 30 days.

Again, this is unverified; but there is a lot of activity around the company today out there on the web.

– Morgan

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