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Lehman Brothers Shuts Down BNC Mortgage Cutting 1200 Jobs

by Glenn Setzer on
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One day after Greenpoint Mortgage shuts its doors the casualties continue to mount. Lehman Brothers announced today that it will be shutting down its subprime mortgage lending unit, BNC Mortgage LLC. BNC was one of the top 20 subprime producers in 2006, originating over $14 Billion in loans.

"Lehman Brothers announced today that market conditions have necessitated a substantial reduction in its resources and capacity in the subprime space," Lehman commented in a press release.

This closing will affect more than 1,200 employees in 23 locations across the US. Lehman did say that is will continue to offer mortgages through their Alt-A unit Aurora Loan Services LLC.

BNC says that applications that have not been process will be returned but it will continue to move forward with applications that have been approved.

Lehman Brothers stock moved higher on the news to $58.46 +0.92 (1.60%).

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Tim Ott
on
Hello, I guess this is what G. Edward Griffin was predicting more than a few years ago in his incredbile book "It came from Jekyll Island". The story of the Federal Reserve System formation and resulting failures ever since. Don't worry, the US taxpayers will foot the bill again over time. Read this book and you will learn more than you ever thought you could. I'm one of the losers in Michigan that already lost a home, join the club I say. People will find a way somehow and learn, then adapt.
David
on
I was employed by BNC - very sad that they closed....was a good company to work for. Economy is really bad all around the board. I am working again and not in the mortgage industry. Many of my friends were 'taken in' by Aurora Loan Services - BNC's sister company...under the Lehman umbrella....however, Aurora closed in February 08. Anyway, like I say, I think I am the only person that has since gotten a job since the Lehman layoffs......it's wild. I keep in contact with many of my co-workers of the 'late' BNC and I do believe most if not all of them are not yet 'officially' employed..... Wild times, indeed.
Corliss
on
I'm one of those people who has a mortgage with bnc mortgage and my account is managed by America Servicing Center. My mortgage is in trouble and I don't know what to do about it. My mortgage payment has doubled and ASC doesn't seem to want to help me. I can't pay double my mortgage, its more than what I make in a month even with overtime, which has recently been cut back. I live in michigan and i know I won't be able to sell my home because there are no jobs and so many homes in my subdivision have already been forclosed and sooo many homes for sell. I really want to keep my home and am willing to do anything to stay in it. I am employed and will make payments. Is there anyone out there who knows where I can get help or how I can stop any foreclosure action before it starts?
Hmmph
on
I work in the same building as a BNC that closed. We took over their office space, and they sold us everything they left behind for a lump sum. I personally cleaned out stacks of files they had abandoned, with people's SSNs, bank account information, addresses, photocopied checks, and other private data. We dumped everything into our shredders, rather than the trash, because how would you feel if that was YOUR stuff just lying around for anyone to pick up? It's always tough when companies go under, but for Pete's sake, they were trusted with critical personal data and just abandoned it. I'm shocked they didn't take responsibility of the information they had been trusted with.
John
on
To: Corliss, Call Americas Servicing Company and ask to speak to their Loss Mitigation Dept. option #4 or the loan modification Dept. at 866-398-7568. Good Luck.
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