Feds Award Colorado Firm Linked To Risky Subprime Mortgages With $798M Jackpot; State Congressional Staffers Refuse Comment

In Douglas County, Colorado, The Denver Post reports:

• The U.S. Treasury has pledged $798 million in incentives to Aurora Loan Services LLC of Douglas County for help in refinancing homeowner mortgages, according to The Associated Press. The company, a subsidiary of bankrupt Lehman Brothers, is the 10th Colorado financial institution this year to receive federal funds intended to boost the economy.

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• The firm's risky lending practices, including allowing low down payments and requiring no income documentation, were part of a widespread Lehman strategy involving mortgage-backed securities that led to Lehman's bankruptcy.

• Officials for Aurora Loan Services were not available for comment or could not be reached Tuesday. Staffers with three Colorado congressional offices would not comment Tuesday because they had not seen documentation of the award to Aurora.

For more, see Aurora loan firm hits jackpot (Aurora Loan Services, which engaged in risky lending, has been pledged incentives to help refinance mortgages).