SPFC Files for Chapter 11

October 02, 1998, 1:00 p.m. EDT 1 Min Read

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.

For reprint and licensing requests for this article, click here.

MORE FROM NATIONAL MORTGAGE NEWS

Politics and policy

How the Trump administration has neutralized the CFPB

Acting CFPB Director Russ Vought has managed to neuter the Consumer Financial Protection Bureau through a series of actions. Senate Banking Committee Chairman Tim Scott, R-S.C., played a major role by cutting funding in half.

By Kate Berry

4h ago
Monetary policy

More rate cuts eyed as Fed zeroes in on soft labor market

Federal Reserve Chair Jerome Powell said there was a "high degree of unity" among committee members during this week's Federal Open Market Committee vote. Out of 12 FOMC members, 11 voted for a 25 basis point cut.

By Maria Volkova

September 17
Politics and policy

Housing organizations call for condo loan flexibility

The Community Home Lenders of America and the Community Associations Institute want the FHA to insure loans on condos approved by Fannie Mae and Freddie Mac.

By Colin McNamara

September 17
Bank stocks

Bank stocks rise on Fed's first rate cut of 2025

The Federal Open Market Committee's decision to reduce interest rates for the first time in nine months lifted bank stocks Wednesday. The 25-basis-point reduction could lead to net interest income headwinds now, but loan growth later, analysts said.

By Allissa Kline

September 17
Mortgage rates

Fed cuts but only some mortgage rates are moving lower

Most lenders said they had already priced in the widely-anticipated decision to cut short-term rates for 30-year home loans but other products will benefit.

By Bonnie Sinnock

September 17
Industry News

Rithm purchasing commercial REIT Paramount Group for $1.6B

The deal for the Class A office building owner will be funded from Rithm's cash as well as liquidity on the balance sheets, plus possible co-investors.

By Brad Finkelstein

September 17