The 'on-again/off-again' sale process has started once again for Aurora Loan Services (ALS), the Colorado-based mortgage banking division of Aurora Bank FSB, according to industry officials.
One ALS official told ASR sister publication National Mortgage News that company employees were told at a 'town hall' meeting late last week that the unit is on the block and must be sold by May 2012.
At press time a spokeswoman for ALS had not returned a telephone call about the matter. ALS was officially for sale last year, but then taken off the market when bids proved too low.
According to figures compiled by National Mortgage News and the Quarterly Data Report, ALS services between $60 billion and $70 billion in loans.
Aurora Bank was once part of Lehman Brothers but did not go through the bankruptcy process. Any ultimate decision about the firm's future would have to be made by the Lehman trustee.
Last year ALS began hiring a small number of production employees, but one company insider said origination volumes have been weak.
A servicing advisor, who requested his name not be used, said ALS even hired officials to “promote their subservicing business and sent a strong message” about becoming a buyer of MSRs only to later back down.