Southern Pacific Funding Corp., Lake Oswego, Ore., has filed for protection under Chapter 11 of the Bankruptcy Code.This filing does not affect the operations of the following subsidiaries of SPFC: National Capital Holdings Inc.; Oceanmark Financial Corp.; Home America Financial Services Inc.; Hallmark America Corp.; and its United Kingdom operations, Southern Pacific Mortgage Ltd. However, the filing will have a negative impact on its largest shareholder, Imperial Credit Industries Inc., Torrance, Calif., which has a 47% stake in SPFC. ICI said it will write down its investment in SPFC to zero. Therefore its third quarter losses, which had been estimated at $65-75 million, will now be in the $85-95 million range. To continue its operations temporarily, SPFC has an agreement with Greenwich Capital Markets Inc. for a $100 million warehouse facility and a $12 million working capital line of credit. SPFC said it hopes to have permanent debtor-in-possession financing in place by Oct. 16.
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Some members of the Senate, where the GOP majority is thinner, also are asking the Federal Housing Finance Agency to reveal more about planned mortgage reforms.
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The housing regulator has been mum on details about its reshuffling, but Secretary Scott Turner has emphasized mission-critical functions would persist.
April 2 -
Regulators should approve the deal because post-merger, the servicing market remains fragmented and the mortgage origination business is even more dispersed.
April 2 -
Publicly traded lenders, including UWM, Rocket Mortgage and Guild Mortgage, saw personnel expenses increase significantly throughout last year.
April 2 -
A three-judge panel will hear an appeal by the Trump administration of a preliminary injunction that has blocked the government from dissolving the Consumer Financial Protection Bureau.
April 2 -
The measure applies to mortgages closed in the months prior to the Southern California wildfires, which are now experiencing early-stage distress.
April 2