Gregory T. Barmore, chairman of GE Capital Mortgage Corp., said last week that he would retire later this year.
A company spokesman said Thomas Mann, president and chief executive of the unit, would assume the title of chairman as well.
GE was the fifth-largest mortgage servicer as of June, with a portfolio of $107 billion, and the 15th-largest originator. GE also owns the second- largest mortgage insurer, GE Capital Mortgage Insurance Co.
Mr. Barmore has been with GE Capital Mortgage since 1986. He had already told some customers about his plans, the spokesman said.
Observers said Mr. Barmore's retirement shouldn't have a major impact on how GE is run, since his role with the company has lessened in the last few years.
In November 1994, Michael Zafirovski was brought in by GE to be president of the mortgage unit. After Mr. Zafirovski was promoted to another position within General Electric Co. last April, Mr. Mann was named to succeed him.
Several observers have questioned GE's commitment to the mortgage lending side of the business since Mr. Barmore became less involved with the day-to-day operations. The company's servicing portfolio as of midyear 1996 was nearly 3% smaller than at the end of June 1995. Most lenders have seen their servicing portfolios increase.
In 1995, GE's origination volume plunged to $4.4 billion, from $12.1 billion in 1994. The company left the retail side of the business in 1995 to focus on wholesale originations, and volume did bounce back in the first half of 1996, by almost 300%.
One mortgage banker who used to work for GE said the company would be better off focusing on its mortgage insurance unit, because that business has been more profitable than lending.
The former employee said since GE has a giant servicing portfolio, it would make sense to have a substantial production arm to produce loans to feed the portfolio and offset runoff.
But by originating loans of its own, GE is in the unusual predicament of competing against companies that could be mortgage insurance customers.
The company spokesman said GE Capital Mortgage Insurance's market share declined in 1996. Mr. Mann would not comment for this article.
But these issues are no longer a concern for Mr. Barmore, who has been with GE for more than 30 years. He said he intends to spend much of his newfound leisure time on a lobster boat he is having built. Mr. Barmore lives on an island off the coast of Maine.
But he won't be leaving the mortgage business entirely.
"I'm on a number of boards, profit and nonprofit. One of them is a subprime REIT," Mr. Barmore said. He said he may soon join the board of another real estate investment trust that specializes in subprime loans.
