Four former executives of the asset management firm Arch Bay Capital launched their own mortgage lending business in Orange County, Calif.
The new company, 5 Arches, was a former Arch Bay subsidiary that originated new mortgages. The five former officers heading up 5 Arches are CEO Shawn Miller, Chief Investment Officer Steven Davis, Chief Technology Officer Tim Gannaway and Chief Legal Officer Gene Clark.
The five managers left Arch Bay in May.
"We are excited to be pursuing new real estate and mortgage businesses just when we hope real estate markets are beginning to turn," Miller said in a statement. "We are proud of the work we've done and wish Arch Bay continued success."
New private mortgage lending businesses began forming in California this year. Bill Dallas is working to boost new originations through Skyline Financial, and Rancho Financial is even bringing back stated-income loans for the rich.
Arch Bay will continue to work on its pools of distressed mortgages it bought during the downturn.