Advanta Mortgage is improving the credit quality of its loans by taking more control over underwriting of subprime mortgages, Moody's Investors Service said in a recent report.

Advanta's loan pools "have performed better than average for the subprime mortgage sector," said Yaron Ernst, vice president and senior analyst at the New York rating agency. And the credit quality of the Spring House, Pa., lender's future securitizations is likely to be "even better," Mr. Ernst wrote, because of its recent efforts to focus more on retail and direct originations, and become less reliant on third-party loan sources such as brokers and correspondents.

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