Gordon Milne, speaking at the 2007 Credit Suisse Homebuilder Conference, said the Calabasas, Calif., company has tried not to have too much exposure to any one market.

"We didn't put a lot of money into hot markets when they were hot," he explained.

This move has paid off, as many homebuilders are being squeezed by significant sales drop-offs in areas including California and Florida.

Milne said Ryland has limited exposure to former "hot markets" Phoenix and Fort Myers, Fla., and only 12 percent of its assets in California. Ryland operates in about 28 markets across the country.

The luxury homebuilder, which runs a mortgage company as well, also acknowledged it is looking for backup lenders for Calabasas-based Countrywide Financial Corp.

Milne said the company has a long-term relationship with mortgage lender Countrywide, but has always had an unnamed major institution in place as a backup. Milne acknowledged that Ryland is currently looking at other backups as well.

Countrywide is among those being hit by the upheaval in the mortgage industry. Many mortgage lenders have been unable to sell home loans or investments secured by home loans in the current market environment, rendering many of Countrywide's assets worth less than just a few months ago.

Milne said subprime mortgages were never a big part of Ryland's business, but acknowledged the company is feeling pressure now that some buyers no longer qualify for alt-A mortgages. Ryland is trying to get those buyers into other loans.

Alt-A mortgages are loans given to customers with minor credit problems or who are unable to fully document their income and assets like a traditional prime borrower.

Shares of Ryland Group added 16 cents to $25.01 in midday trading. The stock has traded in a 52-week range of $23.92 to $60.13.