Arch Bay Capital, once one of the most active buyers of nonperforming residential loans, has sold most of its NPL portfolio and is launching a company that will originate non-agency mortgages, according to industry officials who have been briefed on the plans. One source who has done business with Arch Bay told Inside Nonconforming Markets that the working name of the lending unit under construction is 5 Arch. The company, based in Irvine, CA, “seems to be expanding at a good pace” according to the source ...