Aurora Loan Services (ALS), Denver, recently halted residential production as the company continues to weigh bids on its servicing platform, according to a former ALS official and industry consultants.
At press time an ALS spokeswoman had not returned a telephone call about the matter. Little is known about its production platform, though last year it was looking to staff up in the Orange County, Calif., area.
Management for the $66 billion servicer has been negotiating a sale of the company for the past six months. “They’ve been working on a deal, trying to find an exit,” said one advisor close to the situation. “There are suitors.”
As reported by ASR sister publication National Mortgage News (NMN) earlier in the week Nationstar Mortgage, Lewisville, Texas, appears to be the front runner. A top Nationstar executive declined to comment.
Meanwhile, a source who used to work at ALS said two senior managers were placed on administrative leave last month and have not yet returned. Their identities could not be confirmed.
Among all servicing firms, ALS ranks 17th nationwide, according to figures compiled by NMN and the Quarterly Data Report. ALS and a sister bank were once part of Lehman Brothers but avoided being thrown into bankruptcy.
The Lehman trustee has ordered that the two be sold this year.