Irvine-based Arch Bay Capital LLC, an acquirer of troubled mortgages, has bought $600 million in subprime loans from Wells Fargo & Co.
Word of the sale comes from industry publication Nation’s Mortgage News, which reported the sale took place last week.
Arch Bay was reported to be the winning bidder for the loans, paying $210 million, or 35 cents on the dollar.
That beat out several hedge funds that made lower bids on the portfolio, according to Nation’s Mortgage News.
The loans originally were made by San Diego’s Accredited Home Lenders Holding Co., which filed for bankruptcy protection in May, and Kansas City-based NovaStar Financial Inc., which got out of subprime lending.
Officials from Arch Bay and Wells Fargo declined to comment on the deal.
Arch Bay got its start in 2007 as part of Irvine-based mortgage investor Impac Mortgage Holdings Inc. to acquire distressed mortgages.
