Accredited Home Lenders Holding Co. pumped up its second quarter volume.
The nonprime lender today announced it originated nearly $4.1 billion for the three months ending June 30, up from the first quarter when activity fell to $3.6 billion. The latest total, however, is slightly off from the level in the comparable period a year ago.
Wholesale loans accounted for 87 percent of the quarter's fundings and retail originations the rest, according to the San Diego, Calif.-based company's earnings announcement.
The weighted average coupon rate and credit score was 8.47 percent and 638, respectively, the announcement said.
The servicing portfolio ended the quarter at a reported $9.5 billion, and 3.76 percent of the loans were late 30 days or more.
Accredited said the net cost to originate mortgage loans was 1.34 percent, down from 1.60 percent in the first quarter.
"We are pleased with profit and cost results in the second quarter and the first half of 2006 that presented some of the most challenging market conditions in recent memory," Chairman and Chief Executive James Konrath said in the written statement.
Accredited, which will soon expand with its acquisition of Aames Investment Corp., said its employee count was 2,902 as of the end of the quarter, which is 276 more than in the previous linked period.
Net income rose from the prior quarter to $41.2 million, according to the announcement.
However, Accredited lowered its earnings guidance for 2006 to between $4.50 to $5.00 per share, including $1.00 to $1.35 of dilution related to the Aames merger.
The company said "the most significant items" in revising the 2006 forecast included lower than anticipated origination volume and net gain on whole loan sales below previous expectations.