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Hundreds losing jobs at local Aurora Bank office

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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 LLC 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.
 

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  • waiting game
    there are going to be jobs avaialable in indy. However, they are not guaranteeing everyone that is currently employed will be offered employement. The number of positions available has not been announced. So we are still waiting to see whether or not we will have jobs. The majority (being optimistic) hopefully will.
  • Check your facts IBJ
    The reporting on this is NOT accurate. The story makes the reader believe that 450 people will lose their jobs, when in fact they're not losing them. The jobs at Aurora are going away, but are being replace with Nationstar jobs. I have several friends who work at this office and they are not worried about their jobs.
  • real rate
    The real rate of unemployment is much higher than the figures the government uses. Those figures are indicative of newly unemployed, not the millions who have been out of work for months or years.
  • Oh boy
    And thiey are saying unemployment is down? What reports are they reading. How many people are down and out.

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