The Lehman Brothers-owned Aurora Loan Services the nation's largest alternative-A servicer with a portfolio north of $80 billion could have a new parent company very soon.
According to investment banking sources, a few months back there had been talk in the marketplace that Lehman might try to sell part of Aurora's servicing portfolio, but nothing ever came of it.
Now that Lehman is a candidate for a federally assisted sale, it's likely that Aurora will change hands along with its parent company. At deadline time, a Lehman spokesman declined to comment on Aurora or Lehman.
Fitch announced Sept. 11 that it has placed Aurora's residential servicer ratings on Rating Watch Negative as a result of "the change in financial condition" of Lehman Brothers.
