In its latest earnings release, Accredited Home Lenders Holding Co. announced originations eased and competition in the subprime sector stiffened.
The nonprime lender reported production of $3.2 billion during the first quarter, down from $3.5 billion the prior quarter but up from $2.4 billion a year ago.
Wholesale fundings accounted for 90% of fundings, Accredited said, while the rest came from retail.
"Consumer demand for nonprime mortgages was again very strong by the end of the first quarter," Chairman and CEO James Konrath said in the statement.
Just over $2 billion in mortgages were sold on a whole loan basis, according to the San Diego-based company, while just under $1 billion was securitized.
The mortgage banker said it expects continued pressure on whole loan premiums and fees because of stiff competition in nonprime lending and a compression of warehouse line and securitization spreads. Only modest production increases are expected.
Accredited's $7.5 billion servicing portfolio had a 1.72% delinquency rate at quarter's end, the report said, down 2 basis points from the prior quarter but up from 1.42% a year ago.
Net income during the quarter was $31.3 million, according to the announcement.