Lehman Cuts Mortgage Jobs

Updated from 2:24 p.m. EST

Lehman Brothers(LEH Quote) on Thursday said it would an additional 1,300 layoffs in its residential mortgage lending business.

In light of further dislocation in the mortgage markets, Lehman has suspended all wholesale and correspondent lending activities at Aurora Loan Services, its Alt-A lender based in Littleton, Colo. Aurora will continue to originate loans directly to customers and maintain its servicing business, Lehman said.

Approximately 1,300 jobs will be eliminated, as Lehman closes three operational centers in California, Florida, and New Jersey, while Aurora's Colorado operations will be consolidated into the Littleton office, the firm said. ...