BNC Mortgage (Lehman) - Subprime, Alt-A

Lehman Brothers has announced that BNC Mortgage (bncmortgage.com) will be combined with Aurora Loan Services.

Announcement:
Lehman Brothers, the global investment bank, has announced that BNC Mortgage LLC will be combined with Aurora Loan Services LLC into a single unified residential mortgage business.

CNBC is reporting that, "Lehman to Shutter BNC Mortgage unit, Sees $54 Million in Charges and Goodwill Write-Downs."

Below is another announcement that we have received.

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. With sincerest thanks.

Marketwatch has reported that the closure of BNC will result in 1,200 employees being affected:

Lehman Brothers Holdings Inc. said it will close its BNC Mortgage LLC unit because current market conditions have forced Lehman to reduce its resources and capacity in the subprime market. The closure affects about 1,200 employees in 23 U.S. locations. The New York financial services company said it expects to record a $25 million charge and a $27 million writedown as a result of the closure. Shares of Lehman Brothers were recently trading at $57.60, up 6 cents.