Industry News

Layoffs in lending top 13,000 in one week

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Lehman Brothers Holdings Inc. announced Wednesday it will lay off 1,200 workers as it closes its subprime lending subsidiary, bringing to more than 13,000 the number of layoffs announced by mortgage lenders in the last week. Lehman Brothers said it expects to record $25 million in after-tax charges related to severance payments, and real estate and technology costs in closing its subprime subsidiary BNC Mortgage LLC, plus $27 million in goodwill write-downs. In a statement, the investment bank said market conditions had "necessitated a substantial reduction in its resources and capacity in the subprime space." Lehman Brothers, which according to its latest quarterly report to investors originated $32 billion in residential mortgage loans during the six months ending May 31, said it will continue to originate loans through Aurora Loan Services LLC. Accredited Home Lenders said Wednesday it was closing its retail lending branch and laying off more than 1,000 workers. According to the ...