Lenders originating interest-only mortgages showed divergent trends in the third quarter, with some posting significant declines on a quarterly basis while others continued to increase production. A group of 12 lenders tracked by Inside Nonconforming Markets originated a total of $9.64 billion in IOs during the third quarter, down 23.7 percent from the previous quarter. The decline was driven by PHH Mortgage, whose IO originations through three quarters this year ... [Includes one data chart]