Xceed Mortgage Corp. today reported a second-quarter loss of $16.7 million, reversing a year-ago profit of $4.7 million, as the mortgage provider began readjusting its business away from subprime mortgages in the wake of the credit crisis.

Xceed said it logged $10.2 million in one-time charges during the three months ended April 30, but a shift to providing insurable mortgages is expected to save company $10 million to $13 million a year.

The loss amounted to 60¢ a share. That compares with earnings of 16¢ a share in the year-earlier period.

“As we previously indicated, the second quarter was a transition period for Xceed Mortgage as we adjusted our business in view of the turmoil that has been ongoing in Canada since last summer with the collapse of the asset-backed commercial paper market,” chairman and CEO Ivan Wahl said in a release.

“During the 2008 second quarter, we completed the shift of our focus entirely away from our past core business of offering primarily non-traditional products. Xceed now is solely originating mortgages that qualify for insurance and sale to the Canada Mortgage Bond Program.”

In the first half, Xceed said it has insured about $102.4 million of previously uninsured mortgages.

Revenues were also down sharply in the second quarter, again due to the shift to providing insurable mortgages, to $4.8 million from $15.6 million.