The president and chief operating officer of GE Capital Mortgage Corp., Michael Zafirovski, has been promoted to a job with another GE company.
Mr. Zafirovski has been named president and chief executive of GE Lighting Europe. He will report to James McNerney, president and chief executive of GE Lighting.
A replacement has not yet been named. Mike Neil, executive vice president at GE Capital Corp., will assume Mr. Zafirovski's responsibilities until the vacancy is filled. Mr. Zafirovski had reported to Mr. Neil.
The shift will not affect Gregory T. Barmore, the mortgage unit's chairman, a GE Capital spokesman said.
When Mr. Zafirovski joined the mortgage unit in November 1994, it had suffered $93.5 million in underwriting losses in the first three quarters of 1994. Some observers speculated that Mr. Zafirovski was meant to displace Mr. Barmore. GE officials were quick to dismiss the speculation at the time.
At the time, Mr. Barmore said Mr. Zafirovski was brought into the unit to handle quick growth, adding that the extra manpower would allow him to concentrate on long-term issues and projects.
Mr. Zafirovski was responsible for overseeing day-to-day business operations, including mortgage insurance, mortgage servicing, and conduit operations.
The company, however, decided instead to stay on the sidelines for much of last year because of thin profit margins in the wholesale business. As a result, its origination volume plunged sharply. For 1995, the unit originated $4.4 billion in home loans, against $12.1 billion in 1994.
In his new position, Mr. Zafirovski will be based in London. The job change took effect April 1, said a spokesman at the parent company.
Mr. Zafirovski joined GE in 1975, holding various positions, including president of GE Capital Resale Service and chief financial officer of GE Capital Fleet Services. Before coming to the mortgage unit, he lead GE's acquisition of Avis Lease-Europe and was that firm's president for about two years.
The mortgage unit's business focus shifted with the sale last August of its Residential Express origination unit to Knutson Mortgage Corp. At the time, a GE Capital Mortgage spokesman said the company still had a strong commitment to wholesale lending, mortgage loan servicing, and mortgage insurance.