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In 1997, Lehman bought Colorado-based lender, Aurora Loan Services (not a bank), an Alt-A lender. In 2000, to expand their mortgage origination pipeline, Lehman purchased West Coast subprime mortgage lender BNC Mortgage LLC. Lehman quickly became a force in the subprime market. By 2003 Lehman made $18.2 billion in loans and ranked third in lending.
Liar's loans are 'criminogenic' (they create epidemics of mortgage fraud) because they create strong incentives to provide false information on loan applications." [ 10 ] [ 8 ] : 122–148 On the same page in his prepared testimony Black referenced an article from the Denver Post dated September 16, 2008, the day after Lehman filed for bankruptcy.
In 1997, Lehman bought Colorado-based lender Aurora Loan Services, an Alt-A lender. In 2000, to expand their mortgage origination pipeline, Lehman purchased West Coast subprime mortgage lender BNC Mortgage LLC. Lehman quickly became a force in the subprime market. By 2003 Lehman made $18.2 billion in loans and ranked third in lending.
Aurora Bank was a federal savings bank (FSB) headquartered in Wilmington, Delaware, established in 1921 under the name Delaware Savings And Loan Association. [ 1 ] [ 2 ] It reorganized as an FSB in 1988 [ 3 ] and became a subsidiary of Lehman Brothers in 1999, renamed as Lehman Brothers Bank.
Onity Group, formerly Ocwen, is a provider of residential and commercial mortgage loan servicing, special servicing, and asset management services, which has been described as "debt collectors, collecting monthly principal and interest from homeowners".
CornerStone Education Loan Services was managed by the Utah Higher Education Assistance and was previously one of eight approved federal student loan servicing agencies. Due to financial loss ...
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