Management Shake-Up at SPFC

Southern Pacific Funding Corp., Lake Oswego, Ore., which last month announced it was taking a charge of over $60 million due to higher-than-anticipated prepayments and credit losses in its subprime mortgage servicing portfolio, has announced a shake-up in its senior management.The board of the company appointed E. James Hedemark as CEO, replacing Robert Howard. Timothy Breedlove has been appointed executive vice president and chief financial officer, and Kevin Patrick has joined the company as executive vice president, capital financing. H. Wayne Snavely, chairman of the board, said the board thought the changes were necessary as the company attempts to restructure its capital base, funding sources, and origination strategy. Both Mr. Howard and Peter Makowiecki, formerly executive vice president and chief financial officer, have resigned. But the company said that Messrs. Howard and Makowiecki will continue as consultants to assist the company "in exploration of strategic alternatives."