BNC Mortgage Gets Shut Down By Lehman, 1200 jobs lost

BNC Mortgage is a case of how things can go so horribly wrong, so fast in the mortgage business.

As recently as 2006, BNC Mortgage was a leader mortgage lender, providing more $14 billion in home loans.

Now BNC Mortgage has been shut down by Lehman, in a move that will cost the bank a massive $50 billion.

Although BNC Mortgage is being shut down, Lehman will still offer mortgages and home loans via another of their mortgage services, Aurora Loan Services. However, unlike BNC Mortgage, this company focuses on more creditworthy customers.

Lehman stock is down 24% this year so far and the shut down of BNC Mortgage is not going to help matters.

What do you think about BNC Mortgage being shut down?

Source