Lehman Brothers Shuts Down BNC Mortgage Cutting 1200 Jobs

One day after Greenpoint Mortgage shuts its doors the casualties continue to mount. Lehman Brothers announced today that it will be shutting down its subprime mortgage lending unit, BNC Mortgage LLC. BNC was one of the top 20 subprime producers in 2006, originating over $14 Billion in loans.

"Lehman Brothers announced today that market conditions have necessitated a substantial reduction in its resources and capacity in the subprime space," Lehman commented in a press release.

This closing will affect more than 1,200 employees in 23 locations across the US. Lehman did say that is will continue to offer mortgages through their Alt-A unit Aurora Loan Services LLC.

BNC says that applications that have not been process will be returned but it will continue to move forward with applications that have been approved.

Lehman Brothers stock moved higher on the news to $58.46 +0.92 (1.60%).