The former mortgage servicing subsidiary of Lehman Brothers Holdings Inc. has been fined for allegedly enabling fraudulent loans to make it through the system.

Lehman, which sparked the global financial crisis in 2008 with its collapse, was the parent of Aurora Loan Services LLC.

From 2004 until 2008, Aurora is accused of selling loans that it said had gone through a “pre-funding fraud detection” review when, in fact, they hadn’t.


Source: Mortgage Daily