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Mortgage staff heads leave Lehman Brothers

The heads of mortgage origination and securitisation at Lehman Brothers have left the bank after it cut thousands of jobs in the business, and as analysts have predicted that the bank will make more writedowns in mortgage-related securities.

In January, Lehman said it would substantially reduce its mortgage origination business in the US and make 1,300 job cuts in the division resulting in a one-off cost of $40m (€28.8m). Subsidiary Aurora Loan Services, which specialised in developing Alt-A mortgages, closed three regional offices that month in California, Florida and New Jersey.

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