Arch Bay Capital, which invests in and manages delinquent mortgages, appears to have scuttled — for now — its plans to enter the origination business, according to industry officials who have worked with it.
Arch Bay's president, Shawn Miller, did not return calls about the matter Wednesday.
One vendor that has worked with Arch Bay said the firm recently reassigned and even let go workers who were hired to work on originations.
A year ago Arch Bay, an Irvine, Calif., hedge fund, made news when it bought a $600 million portfolio of troubled subprime loans from Wells Fargo & Co.
Executives who work in the nonperforming loan field say Arch Bay continues to review and bid on pools of such loans.