Lehmans may close SPML

Rumours were rife last week that Lehman Brothers is planning to pursue a single-brand strategy.

Mortgage Strategy understands the US bank will close its Southern Pacific Mortgage Limited division in favour of Preferred.

Last September the bank announced some 150 plus jobs were to be slashed from new business departments, including its compliance and mortgage operations. But it insisted that SPML and Preferred would still offer loans and that its mortgage servicing business, Capstone Mortgage Services, would continue to operate.

Last month, the firm announced plans to cut further jobs in its Mortgage Capital business, citing problems in the mortgage market.

Lehmans declined to comment.