Lehman Brothers said Wednesday that it’s shutting its subprime-mortgage unit BNC Mortgage LLC, becoming the latest company to stop offering home loans to less-creditworthy borrowers.
BNC was a top-20 subprime mortgage lender in 2006, originating more than $14 billion worth of home loans, according to industry publication Inside B&C Lending.
Lehman said it will keep offering mortgages through Aurora Loan Services LLC, another unit that focuses on so-called Alt-A home loans. Alt-A mortgages are offered to more-creditworthy borrowers, but they often require less documentation.
The closure of BNC will affect roughly 1,200 employees in 23 locations in the U.S., Lehman (LEH:Lehman Brothers Holdings Inc
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