<p>ANN ARBOR, Mich. – Newly originated nonprime mortgage equity continues to be concentrated in the Southwest, even though a weakened economy nationwide has made lending less favorable for lenders in all states. Nonprime mortgage loans are non-standardized loans that don't fit into the standard Fannie Mae guidelines. They include subprime loans, and they may include jumbo loans. The finding of the "Nonprime Mortgage ReportT Best Places to Lend" published by University Financial Associates showed that borrowers and the underlying housing collateral in the Southwest "are situated more favorably to withstand the consequences of the slower economy," said Dennis Capozza, professor of finance at the University of Michigan and a principal in University Financial Associates. States rated being "above average" by the Nonprime Mortgage Report include: Texas, Oklahoma, Louisiana and Mississippi in the Southwest. Outside the Southwest, Alaska, North Dakota and West Virginia are "above average." "Nonprime Mortgage Report Best Places to Lend" is based on data UFA looks at each quarter to evaluate economic conditions in the U.S. and how they impact expected future defaults, prepayments, loss recoveries and loan values for nonprime loans. Several factors affect the expected defaults on a constant-quality loan. Most important, says UFA, are worsening economic conditions.</p>