5 MSAs Top UGC Mortgage Index

The housing markets in five metropolitan statistical areas in four states show the highest probability of improvement over the next two years, according to a mortgage risk index maintained by United Guaranty Corp., Greensboro, N.C.The top-ranked MSAs in the index for the third quarter are: Beaumont and Amarillo, Texas; Salem, Ore.; Santa Cruz, Calif.; and Kalamazoo, Mich. States showing the highest probability of improvement are Oregon, North Carolina, Vermont, South Carolina, and Colorado, UGC said. The report is based on UGC's quarterly ACUFactor mortgage risk index, which projects geographic market risk for the top 200 MSAs over the next four to eight quarters, the company said. The index uses a scale of 1 to 10, with 1 representing the least likelihood of declines in model variables, which include home prices, the local economy, population stability, and mortgage delinquency trends. UGC can be found online at http://www.ugcorp.com.