Gleacher & Co. Inc. said Tuesday that it has started a residential mortgage banking subsidiary called Descap Mortgage Funding LLC.
The New York investment bank said it based the new unit on ClearPoint Funding Inc., a Marlborough, Mass., lender it recently bought. ClearPoint is licensed as an independent mortgage lender in 12 states and the District of Columbia and has about 100 employees.
Mark Pappas, who is based in New York, is to be president of the new subsidiary. Greg O'Connor, the founder of ClearPoint, is to remain with the company and lead the overall operation.
"The acquisition of ClearPoint Funding will give us an initial platform from which to build and execute a national mortgage origination strategy," Pappas said in a press release. He added that the unit plans to expand its reach geographically by hiring additional mortgage staff and through potential acquisitions.