ARC Systems Closing Doors

ARC Systems, a decisioning vendor based in Austin, Texas, that has been in the mortgage space for 23 years, will officially cease operations on Dec. 31.ARC is credited as the first to introduce an automated underwriting system for subprime mortgages. A few months ago, company founder and chief executive Ed Jones announced that he would be looking for a buyer, but none has shown interest to date, he told MortgageWire. "The market is scared to death," he said. "A lot of vendors are hurting more than they're willing to admit. We don't know what the market will look like when it comes back, either." Mr. Jones attributes the closure to a loss in revenue due to the fact that their major clients either went out of business or shed their correspondent channel. The company can be found online at http://www.arcsystems.com.