SecurityNational Mortgage Co. on Dec. 11 entered into a binding term sheet with Lehman Brothers Holdings Inc. and Aurora Commercial Corp. to settle the litigation brought by Lehman Holdings against SecurityNational Mortgage in the U.S. District Court for the District of Utah.
The settlement will eliminate any appeal and any related matters in a separate case in which SecurityNational Mortgage obtained a judgment against Aurora Bank FSB, formerly known as Lehman Brothers Bank FSB, and Aurora Loan Services LLC.
The parties agreed to jointly prepare a final settlement and mutual release agreement. Final agreements were executed on Dec. 20, effective as of Dec. 9.
Under the terms of the settlements involving both of the Utah legal cases, payments are to be made by Aurora to SecurityNational Mortgage, and by SecurityNational Mortgage to Lehman Holdings. The net result is a payment of $2.1 million to Lehman Holdings, which includes an agreement to settle and release all claims arising from the sale of mortgage loans by SecurityNational Mortgage to Aurora or Lehman Holdings pertinent to the Utah cases.
SecurityNational Mortgage Co. is a unit of Security National Financial Corp.