SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (date of earliest event reported): September 11, 1998
SOUTHERN PACIFIC FUNDING CORPORATION
(Exact name of registrant as specified in its charter)
California 1-11785 33-0636924
(State or other jurisdiction (Commission File No.) (I.R.S. Employer
of incorporation) Identification No.)
4949 Meadows Road, Suite 600
Lake Oswego, OR 97035
(Address of principal executive offices) (Zip code)
(503) 303-5400
(Registrant's telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
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Item 5. Other Events
In light of recent adverse conditions in the global asset-backed
securities, debt and equity markets and related issues facing the registrant,
management is focusing its attention on the impact that these conditions may
have on earnings for the third quarter ended September 30, 1998. Specifically,
management is seeking to assess the viability of additional loan securitization
transactions for the foreseeable future, as well as the effect of market
conditions on the carrying value of the registrant's interest-only and residual
certificate assets. Although the registrant has not completed its evaluation of
these issues, among the actions currently being considered by management are
whole loan sale transactions to address liquidity requirements and a write-down
in the value of its residual assets. The registrant therefore anticipates that
earnings for the 1998 third quarter, and as a result, the fiscal year, will be
substantially below published analyst expectations and that the registrant may
incur a loss.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SOUTHERN PACIFIC FUNDING CORPORATION
By:/s/ Peter F. Makowiecki
Name: Peter F. Makowiecki
Title: Chief Financial Officer
