A management shake-up has followed the sudden resignation last week of the president of GMAC Mortgage Co., Elkins Park, Pa.
Since then a top executive has been dismissed and a new president has been named.
GMAC's head of production, Patrick Sheehy, was fired last Friday. The same day, R. Michael O'Brien, the chief financial officer of the mortgage unit, was named its president.
Mr. O'Brien will report to John D. Finnegan, finance chief of the parent company, GMAC Financial Services, and chairman of the mortgage group.
The presidency of the mortgage company was left vacant last week when Mark Korell unexpectedly resigned after only two years at the helm, citing a chance "to reenergize and refocus, and consider other career opportunities."
Mr. Korell was hired when the company's parent, General Motors Corp., decided to make a strong commitment to the mortgage industry, one year after it had strongly considered selling the unit. Mr. Korell was brought in to expand as well as to run the unit. At the time, sources said GM could not get the price it was looking for.
Fired last Friday along with Mr. Sheehy, who was managing director and head of national production, were other employees brought in by Mr. Korell.
A spokesman for GMAC Mortgage said the company believed a change in management was needed to stay profitable in this down market. He declined to comment further on the specific employees let go.
At this time, the spokesman said, GMAC has no plans to replace Mr. Sheehy.
Mr. Sheehy was brought to GMAC late last year from Prudential Home Mortgage to manage the company's 125-branch retail network and handle affordable housing, product development, and telemarketing activities.
Interviewed shortly after his hiring, Mr. Sheehy said he planned to expand business with telemarketing and affinity and relocation lending, market to the one million General Motors employees and retirees, as well as the 11 million holders of the GM Master card.
Though Mr. Sheehy was hired to expand production, he was also told to rein in costs, a difficult task for the head of production.
Before joining GMAC, Mr. Sheehy headed national sales at Prudential, where he oversaw "B and C" lending, home equity, and affordable housing efforts. Before that, he had worked at Cameron Brown Mortgage Co. and General Electric Mortgage Insurance.
Mr. O'Brien was named managing director and chief financial officer of GMAC Mortgage in 1994, becoming responsible for finance, accounting, information technology, and residential servicing. He came to GMAC in 1985, when it acquired Colonial Mortgage Co., his employer since 1971.
