Aurora Bank was a

federal savings bank Federal savings associations (also called "federal thrifts" or "federal Savings Banks"), in the United States, are institutions chartered by the Office of Thrift Supervision which is now administered by Office of the Comptroller of the Currency a ...

(FSB) headquartered in Wilmington,

Delaware Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic and South Atlantic states, South Atlantic regions of the United States. It borders Maryland to its south and west, Pennsylvania to its north, New Jersey ...

, established in 1921 under the name Delaware Savings And Loan Association.Aurora Bank, FSB
Federal Deposit Insurance Corporation. Retrieved November 25, 2010Banking
OnGreen. Retrieved November 23, 2010 It reorganized as an FSB in 1988Office of the State Bank Commissioner Annual Report for 2009
State of Delaware, December 31, 2009. Retrieved November 24, 2010 and became a subsidiary of

Lehman Brothers Lehman Brothers Inc. ( ) was an American global financial services firm founded in 1850. Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merril ...

in 1999, renamed as Lehman Brothers Bank. The bank spearheaded Lehman's

mortgage A mortgage loan or simply mortgage (), in civil law (legal system), civil law jurisdictions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners t ...

loan business while continuing to offer retail deposit accounts. After the 2008 failure of its parent company the bank continued to operate, but its

capital Capital and its variations may refer to: Common uses * Capital city, a municipality of primary status ** Capital region, a metropolitan region containing the capital ** List of national capitals * Capital letter, an upper-case letter Econom ...

position deteriorated rapidly due to depositor withdrawals. The

Office of Thrift Supervision The Office of Thrift Supervision (OTS) was a List of federal agencies in the United States, United States federal agency under the United States Department of the Treasury, Department of the Treasury that chartered, supervised, and regulated al ...

imposed special restrictions on its business and the Lehman bankruptcy estate invested hundreds of millions of dollars to prevent its failure. It changed its name to Aurora Bank and, in 2012, exited the banking business by selling most assets and insured deposits to New York Community Bank and most loan servicing interests to Nationstar Mortgage and Selene Finance. The following year it relinquished its banking charter and relocated to Littleton,

Colorado Colorado is a U.S. state, state in the Western United States. It is one of the Mountain states, sharing the Four Corners region with Arizona, New Mexico, and Utah. It is also bordered by Wyoming to the north, Nebraska to the northeast, Kansas ...

. The company remained a party in litigation relating to its

loan origination Loan origination is the process by which a borrower applies for a new loan, and a lender processes that application. Origination generally includes all the steps from taking a loan application up to disbursal of funds (or declining the applicatio ...

practices under Lehman Brothers, and in 2018 it paid a $41 million civil penalty to the federal government to settle claims that it had misrepresented the quality of its loans. It entered liquidation in September 2020.

References

{{DEFAULTSORT:Aurora Bank Lehman Brothers Companies based in Wilmington, Delaware Banks based in Delaware American companies established in 1921 American companies disestablished in 2020 Companies that filed for Chapter 11 bankruptcy in 2008 Banks established in 1921 Banks disestablished in 2013 Mortgage lenders of the United States 1921 establishments in Delaware 2020 disestablishments in Colorado