PITTSBURGH and NEW YORK — Toll Brothers, the nation's largest builder of luxury homes announced that its third quarter earnings were down 84%. Year-to-date earnings are down $26.5 million the company said, attributing the losses to the downturn in the luxury home market and the credit/liquidity crunch, and sales are down 21% from a year ago. While Toll Bros. mortgage business is not affected by the subprime slide, the credit crunch has dried up liquidity for jumbo loans, the builder's stock-in-trade.
Lehman Brothers, a packager of subprime loans into securities, announced it will shutter one of its home lending units, BNC Mortgage, and lay off 1,200 employees, taking a $54 million charge in the third quarter.
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