Southern Pacific Funding Corp. is continuing its expansion with the acquisition of an Atlanta-based subprime and commercial real estate lender.
Southern Pacific, Lake Oswego, Ore., paid $5 million for 95% of the equity of National Capital Funding Inc. The remaining 5% of National Capital will stay with the company's management.
National Capital is a holding company for three lending subsidiaries: Morcap Inc., a subprime residential lender; Nation Capital Funding Corp., a commercial real estate lender; and Catalyst Funding, a commercial leasing service.
Morcap made more than $40 million in loans in the fourth quarter, through relationships with more than 400 brokers in 20 states.