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Ann Arbor, MI -- The same six states, including four known as oil-producing areas, remain on University Financial Associates' Nonprime Mortgage Report Best Places to Lend.
The fall 2004 list includes Alaska, Louisiana, Mississippi and Texas (the four oil states) plus North Dakota and West Virginia.
According to UFA, "best" places have expected loan values (what it defines as profitability) for a "constant-quality" borrower higher than in other states.
Until the summer 2004 report, a fifth oil state, Oklahoma, had been a member of this group.
As in previous reports, Dennis Capozza, professor of finance at the University of Michigan Business School and a principal in UFA, is quoted as saying, "Both borrowers and the underlying housing collateral in these areas are situated more favorably to withstand the consequences of an uncertain economy.
"Expected defaults in the best places ...