Aurora Bank

Aurora Bank

Company type	Subsidiary
Industry	Banking, Mortgage lending
Predecessor	Delaware Savings And Loan Association
Founded	1921
Fate	Liquidated
Headquarters	Littleton, Colorado , United States
Area served	United States
Parent	Lehman Brothers (1999–2008)

Aurora Bank operated as a federal savings bank (FSB) with its main office located in Wilmington, Delaware. Founded in 1921 under the name Delaware Savings And Loan Association, it transitioned to an FSB in 1988. In 1999, it became a subsidiary of Lehman Brothers and was subsequently renamed Lehman Brothers Bank. The institution primarily managed Lehman’s mortgage lending operations while also servicing retail deposit accounts.

After the 2008 failure of its parent company, Aurora Bank continued its operations but experienced a swift reduction in capital caused by depositor withdrawals. The Office of Thrift Supervision enforced regulatory constraints, and the Lehman bankruptcy estate injected hundreds of millions of dollars to avert the bank’s collapse. The bank was rebranded as Aurora Bank and exited the banking sector in 2012 by divesting most of its assets and insured deposits to New York Community Bank, along with transferring loan servicing rights to Nationstar Mortgage and Selene Finance. In 2013, it surrendered its banking charter and moved its headquarters to Littleton, Colorado.

The entity remained subject to legal proceedings concerning loan origination practices conducted under Lehman Brothers, resulting in a $41 million civil penalty paid in 2018 to resolve federal allegations related to misrepresenting loan quality. Aurora Bank commenced liquidation in September 2020.