The subprime market’s mid-sized players felt the profit pinch during the second quarter – a period that saw stiff competition chip away at their bottom lines despite rising originations. Saxon Capital reported $19.4 million in net income for the second quarter. While that was up from the $17.4 million net income the company posted during last year’s second quarter, it was down sharply from the $31.7 million in earnings Saxon reported during the first…