It is generally referred to as "line breeding". Reptiles can handle several generations of inbreeding before as such deformities could/would show up.
Many of the morphs we know and love were started from a few single specimens, and to prove them out line breeding was used. After all the work is done to figure out the genetics, it isn't a bad idea to out-cross the animals to non relative individuals to help restrengthen the lines, and create more genetically diverse animals.