Bank of N.Y. Unit to Use Loan Brokers
Bank of New York's mortgage company is reaching out to loan brokers for the first time.
The unit - ARCS Mortgage of Calabasas, Calif. - is setting up an operation in Portland, Ore., to get business through mortgage brokers in the Northwest. It will focus initially on the Portland area, where ARCS has no retail offices.
The operation is slated to bring in about $200 million of loans next year, or 10% of ARCS' total originations, company president Howard Levine said in an interview this week.
The move will make ARCS one of the last major mortgage companies to tap brokers. In the past few years, scores of other companies have embraced the strategy. ARCS and some others have moved slowly to ensure that the approach doesn't produce higher delinquencies.
ARCS recently hired Don McIntyre, a refugee from Benj. Franklin Savings, to head up the new effort. The large Benj. Franklin, based in Portland, was seized by regulators in February 1990 and has since been sold to BankAmerica. [Tabular Data Omitted]