Arch Bay Capital, an active buyer and seller of nonperforming mortgages, is on the verge of jumping into the origination market and is busily gathering lending licenses in several states, according to officials briefed on its plans.

A nonbank based in Irvine, Calif., Arch Bay made news last year when it bought $600 million in nonperforming loans from Wells Fargo & Co. It also recently issued a bond backed by nonperforming loans.

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