The third quarter represented a small setback for Accredited Home Lender's growing mortgage production.
The subprime lender announced it originated $3.2 billion in mortgage loans, off slightly from its record volume of $3.4 billion in the second quarter. The latest figure is the first decrease this year, but it is 46% above the level in same period a year earlier.
Wholesale originations accounted for 90% of the latest volume and retail made up the remaining portion, the San Diego, Calif.-based company reported.
Accredited said the servicing portfolio had a balance of $6.1 billion at Sept. 30 -- an 85% surge from a year ago, primarily due to the company's quarterly securitization program and an increase in the loans held for disposition.
"We continued to grow the portfolio and earn an increasing share of our revenue and profitability from the portfolio," company chairman and chief executive James Konrath said in the announcement. "To that end, the most important event of our quarter was raising $84.1 million in net proceeds from an over-subscribed initial offering of preferred stock out of our REIT subsidiary. The proceeds raised in the offering will be used to further bolster our strategy of portfolio growth and improved consistency of future earnings."
The 1.5% of delinquent loans in the servicing portfolio at the third quarter's end improved from 1.9% a year earlier, Accredited reported
The quarter's weighted average credit score was reportedly 639.