| Subprime in Southwest Supreme
University Financial Associates releases “Best Places to Lend” on nonprime mortgages September 18, 2003 By MortgageDaily.com staff |
| The biggest state in the Southwest no longer reigns as one of the nation’s best subprime mortgage-lending places, according to one industry report, but other states in the region do.
Following more than three years as one of the Best Places to Lend on nonprime mortgages, Texas did not make the cut this quarter. Nonetheless, states in the Southwest dominate the list, including Oklahoma, Arkansas, Louisiana, and Mississippi. According to the report, which was published by University Financial Associates LLC (UFA), West Virginia, and newcomers Alaska and North Dakota, filled out the remaining states on the Best Places to Lend. Most states are still less favorable for nonprime mortgage lenders compared to four years ago, but “the underlying housing collateral in these areas are situated more favorably to withstand the consequences for the uncertain economy,” a UFA spokesman said in an announcement. Contrastingly, even though Oklahoma, Arkansas, and Louisiana were listed among the Best Places to Lend, they are states with moderately high levels of suspected fraud activity, according to the Fraud Index map for March. The states were rated “3” on a four-point scale, with “4” being the highest level of suspected fraud activity according to sysDome, which released the report. States with the highest level of suspected fraud activity (4) included California, Missouri, Arizona, and Minnesota, the fraud-prevention company reported. The map showed that Texas is in the same moderately low fraud activity category as Best Places to Lend state Alaska. The states included in the Best Places to Lend with the lowest level of suspected fraud activity were Mississippi, North Dakota and West Virginia. Best Places to Lend is based on an extensive analysis of local economic conditions in each state and the relationship of those conditions to loan profitably, UFA said. Millions of mortgage loan records are reportedly studied each quarter to assess the vulnerability of each state to loan losses and prepayments. sysDome’s Fraud Index map illustrates a compilation of scores automated by its Electronic Loan Review System. The scores are based upon a detailed analysis of transactions submitted by lenders, insurers, investors, and brokers, the company said. |
