Lehman Brothers announced today that it was shutting down BNC Mortgage, the subprime mortgage company that it bought in 2004. A note on the BNC Mortgage site says that the company will be honoring all of its loan commitments — so don’t panic yet.
Lehman says it will lay off 1,200 people. That’s in addition to the nearly 11,000 (heck, maybe more) people who were laid off last week, including a fair number at Countrywide.
In other mortgage news, Accredited Home Lenders, a subprime lender based in San Diego, fired 1,600 people, about half of its staff. On Monday, GreenPoint Mortgage went down. Read the latest from the New York Times www.nytimes.com/2007/08/23/business/23lend-web.html?_r=1&oref=slogin
Lehman says it will take a $52 million hit on the closure. Someone’s bonus for the year just went up in smoke.
Aug. 22, 2007.