Lehman shuts BNC Mortgage unit, cuts 1,200 jobs

Roland99

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Wed Aug-22-07 04:06 PM
Original message

Lehman shuts BNC Mortgage unit, cuts 1,200 jobs

Source: MarketWatch

Lehman shuts BNC Mortgage unit, cuts 1,200 jobs
Bank says market conditions have forced step back from subprime business

http://www.marketwatch.com/news/story/lehman-shuts-subprime-lending-unit-eliminating/story.aspx?guid=%7B1BEE3E7E%2DAEF2%2D43E4%2DAB33%2DCC572CEE41EB%7D

Lehman Brothers said Wednesday that it's shutting its subprime-mortgage unit BNC Mortgage LLC, becoming the latest company to stop offering home loans to less-creditworthy borrowers.

BNC was a top-20 subprime mortgage lender in 2006, originating more than $14 billion worth of home loans, according to industry publication Inside B&C Lending.

Lehman said it will keep offering mortgages through Aurora Loan Services LLC, another unit that focuses on so-called Alt-A home loans. Alt-A mortgages are offered to more-creditworthy borrowers, but they often require less documentation.

The closure of BNC will affect roughly 1,200 employees in 23 locations in the U.S.

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mountainvue

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Wed Aug-22-07 06:02 PM
Response to Original message

1. 11,000 jobs have been lost in the mortgage

industry since last Friday. Four lenders went out of business today (that I know of) and it's only Wednesday. It's getting mighty ugly out there.

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Roland99

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Wed Aug-22-07 06:37 PM
Response to Reply #1

2. Saw a Countrywide office at lunch today. Made me wonder how nervous they all were.

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mountainvue

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Wed Aug-22-07 09:40 PM
Response to Reply #2

5. Bank of America just invested 2 billion dollars in them

today. That's not going to get them very far. Their stock went up yesterday when someone floated a rumor about Warren Buffet investing in them via Berkshire Hathaway.
Yesterday, a law firm filed a $440 million dollar lawsuit against them on behalf of their shareholders.
I never liked doing loans with them because it took forever to get my loans funded. They always acted as though they didn't need my business. I quickly found other lenders who appreciated my business and got my loans done quicker and at rates at least .25 to .5 better than CW. I haven't closed a loan with them in at least 5 years. So while I may feel a bit of schadenfreude towards the company in general, I do feel bad for the people who are going to get laid off/have been laid off by them. They're not headed for a storybook ending.

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sarcasmo

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Wed Aug-22-07 06:48 PM
Response to Original message

3. It's almost a rate of one a day closings.

Kick and Nom.

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CountAllVotes

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Wed Aug-22-07 07:27 PM
Response to Original message

4. I got an offer today from AHM

Edited on Wed Aug-22-07 07:27 PM by CountAllVotes

They wanted to lend me a little over 10K at 15.9% interest!

Uh huh.

:kick:

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mountainvue

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Wed Aug-22-07 09:43 PM
Response to Reply #4

6. I guess someone forgot to tell their

marketing department that they went out of business a couple of weeks ago.

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