Quarterly production edged up at Accredited Home Lenders Holding Co.

Third quarter mortgage originations of $4.2 billion were $0.1 billion better than in the previous quarter but $0.3 billion off from the same period a year earlier, according to the company's earnings announcement today.

Wholesale originations represented 88 percent of the latest volume and retail loans -- its most profitable origination channel -- made up 12 percent, Accredited said. Third quarter performance reflected a higher growth rate in the retail channel, which will be immediately expanded due to the recent acquisition of Aames Investment Corp.

The weighted average coupon rate was 8.51 percent for the quarter, according to the data. The weighted average credit score was 635.

The San Diego-based lender reported that its net cost to originate mortgages was 1.53%, compared to 1.34 percent in the second quarter.

The servicing portfolio was $9.4 billion as of Sept. 30 with a 5.44 percent 30-day delinquency rate, according to the announcement.

Third quarter net income was announced at $18.4 million, plunging from the second quarter's level of $41.2 million.

"As previously reported, our recent performance has been negatively impacted by fierce pricing competition, ongoing product contraction, anticipated higher delinquencies and losses, and activities associated with the acquisition of Aames Investment Corporation that was effective on October 1," Accredited Chairman and Chief Executive James Konrath said in the written statement.