Aurora Bank FSB will terminate all 450 employees at its Indianapolis office as the troubled residential mortgage servicing provider prepares to sell a large portion of its assets.
Wilmington, Del.-based Aurora notified the Indiana Department of Workforce Development on Tuesday that the job cuts will occur on July 7. Positions affected include 141 customer-relations managers, 69 loan-resolution counselors, 61 foreclosure specialists, 55 call-center representatives and 23 bankruptcy specialists.
In March, Nationstar Mortgage of Lewisville, Texas, announced it had signed an agreement to acquire about $63 billion in residential mortgage servicing assets from Aurora for $268 million in cash.
The transaction is expected to close by the end of June and will include a portfolio mostly consisting of non-conforming loans, according to Nationstar.
A spokesman for Nationstar didn’t return phone calls seeking comment on whether the company will take over Aurora’s space at 5920 Castleway West Drive on the northeast side of Indianapolis.
There’s a chance Nationstar could hire some of Aurora’s employees. Marshall Murphy, Nationstar’s executive vice president of investor relations, told the Omaha World-Herald that it intends to hire a “significant number” of Aurora’s employees at an office that is closing in Scottsbluff, Neb., if they reapply for jobs. The office has an estimated 400 to 500 employees.
Aurora, a subsidiary of bankrupt Lehman Brothers Bancorp Inc., operates Aurora Loan Services LLC in Littleton, Colo. It’s the 19th largest servicer of residential mortgages in the nation, according to trade publication Inside Mortgage Finance.
Besides Indiana, Aurora has locations in California, Colorado, Missouri, Nebraska, New Jersey and New York.
Nationstar services more than 645,000 residential mortgages with balances totaling nearly $107 billion.