The Irvine, Calif., real estate investment trust said August's output represented a 9% rise from July levels. "We are pleased with this level, given market conditions," said CEO Brad A. Morrice. "We are also pleased with the quality of the loans we are originating."
The company said interest-only loans fell to 17% of nonprime production in August from 35% a year ago. California-based loans slipped to 32% of nonprime production from 37% a year ago.
"We believe our strict underwriting guidelines, skilled risk management and servicing teams and enhanced fraud detection tools have resulted in lower early-payment default and repurchase rates than many of our peers. While we have seen an increase in early-payment defaults from 2005 levels as a result of the macro-economic environment, the increase has been modest," Morrice said.