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Article: Bank of N.Y. may liquidate big mortgage lending unit. (Arcs Mortgage to be shut down)
- Article from:
- American Banker
- Article date:
- February 7, 1995
- Author:
CopyrightCOPYRIGHT 1995 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In a stark sign of the downturn in home lending, Bank of New York Co. is poised to liquidate its sizable mortgage unit.
After failing to find a buyer for its Arcs Mortgage, Bank of New York has decided to shut down the unit's production offices, lay off most of its 500 employees, and sell a $9 billion servicing portfolio, according to sources close to the unit.
A Bank of New York spokesman said the company "is reviewing the entire Arcs operation, and that may result in a reconfiguration." He said, however, that reports of a shutdown were "premature."
Arcs, based in Calabasas, Calif., has been for sale since at least July, but interest has been tepid, ...