A non-bank based in Southern California, Arch Bay made news last year when it bought $600 million in nonperforming loans from
A company official confirmed to National Mortgage News that Arch Bay is working on something tied to originations but would not comment further.
The firm, though, has created a website for a unit called Arch Bay Mortgage that said, "Coming Soon."
Industry sources said some of Arch Bay's financing comes from a special fund controlled by partners at
One lender in the Southern California market said he has heard of Arch Bay's plans, but questioned its timing. "They're getting in at a time when fundings are shrinking," he said.