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Lehman to Reap $1.5 Billion From Mortgage Bank Units, FT Says

June 30 (Bloomberg) -- Lehman Brothers Holdings Inc. has exited the assets of its unit Aurora Bank FSB in a transaction that could help reap about $1.5 billion for creditors, the Financial Times reported.

Aurora’s $64 billion residential mortgage servicing rights have been sold to Nationstar Mortgage Holdings Inc., which is owned by Fortress Investment Group LLC, the report said, citing Lehman. The collapse of Lehman in 2008 left behind two mortgage subsidiaries including Aurora Bank and Woodlands Commercial Bank, the report said.

The combined sale of both bank assets will earn about $1.5 billion for creditors, the FT said, citing Douglas Lambert, managing director of Alvarez & Marsal.

To contact the reporters on this story: Ambereen Choudhury in London at achoudhury@bloomberg.net

To contact the editors responsible for this story: Edward Evans in London at at eevans3@bloomberg.net

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