Magazine article American Banker

Arbor's Founder Won't Part with Commercial Lending Unit of the Business

Magazine article American Banker

Arbor's Founder Won't Part with Commercial Lending Unit of the Business

Article excerpt

What's a 33-year-old multimillionaire to do now that he has sold the company he founded? For one thing, he could buy some of it back.

And that's exactly what Ivan Kaufman, Arbor National Holdings Inc.'s chairman and chief executive, is doing.

Late last week, the Uniondale, N.Y., company announced that an entity headed by Mr. Kaufman had agreed to buy Arbor National Commercial Mortgage Corp. for about $1.9 million. The deal for the Boston-based unit will be completed next month, according to the company.

"I am fairly young, and sitting back and kicking my heels up is not what I plan to do," Mr. Kaufman said.

Arbor had agreed to sell the unit before completing a deal in August, under which BankAmerica Corp. will buy Arbor National for about $118 million. That deal will also be completed early next year.

Mr. Kaufman, a major stockholder, will take many millions of dollars out of the sale.

He has been one of the most visible figures in home lending in recent years. The Long Island native founded Arbor in 1983 while he was still in law school and built it into a top-100 mortgage bank with a servicing portfolio of $5 billion in 10 years.

While Mr. Kaufman will be keeping a minor part of Arbor National, he will be selling the fruits of most of his efforts over the past 10 years.

"For me it is bittersweet in a lot of ways," he said. "Selling the company is like selling a part of me. It's going to be a big adjustment."

What he will not miss about Arbor National Mortgage is its size. …

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