ANN ARBOR, Mich. – The lending climate for all lenders is less favorable than it was two years ago, but the "Nonprime Mortgage Report Best Places to Lend" for nonprime mortgage equity continue to be concentrated in the Southwest, according to a study by University Financial Associates, publisher of the Nonprime Mortgage Report. States rated "above average" by NMR include Texas, Oklahoma and Louisiana, in the Southwest. Outside of the Southwest, Alaska and West Virginia remain "above average." In addition, Mississippi returned to the list, while Connecticut dropped from it. NMR predictions are based on extensive analysis of local economic conditions in each state and the relationship of those conditions to loan profitability, including future defaults, prepayments, loss recoveries, and loan values. The report is issued every quarter.