Lehman Wants to Sell ALS But Nobody Want to Buy it

The bankrupt Lehman Brothers Holdings has been trying to sell Aurora Loan Services, (ALS) its alt-A mortgage servicing unit (alt-A = less than prime, more than sub-prime) but can’t find a buyer. According to an investment banker they have been actively seeking a buyer for “several months”

ALS is one of the top 20 residential mortgage servicing companies in the country. We don’t have their current numbers but do know that at one time they held the rights to more than $120B in loans. The bulk of the loans are alt-A but there is some sub-prime as-well as some A paper in the portfolio.

ALS is not part of the famous Lehman bankruptcy that nearly caused the end of life as we know it. ALS is in-fact, part of Lehman Brothers Bank domiciled in Delaware.

It is a testament to our times when no one is willing to agree to buy the rights to collect fees on $100B+ just because the business deals in less than perfect mortgage paper.

Commercial Mortgage Loans – www.masterplancapital.com

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