Report: Texas Pays Highest Effective Mortgage Rates

According to a report published by ""Opera Solutions"":http://www.operasolutions.com/, the Lone Star State pays one of the nation's highest weight average coupon rates on its mortgages.

The information comes as a surprise, considering Texas is one of the best-performing housing markets since the credit crisis started. Opera said the incongruity represents ""one of the most significant mispricing of risks in the Non-Agency RMBS marketplace.""

""It's striking to see how the state that has maintained the best LTVs (loan-to-value ratios) throughout the crisis is also paying the highest weighted average coupon among major markets,"" said Bill Hunt, Opera VP and author of the company's ""Mobiuss Market View"":http://www.mobiuss.com/ report. ""This fact has interesting ramifications on everything from prepayments, defaults, and loss severities to credit support for bonds exposed to Texas borrowers and properties.""