Lenders planning their business strategies are obviously seeking hot regional markets where they can concentrate their marketing efforts. What is not so obvious, though, is that hot markets can also be risky.

At the recent conference of the Mortgage Bankers Association of America in San Francisco, Anton E. Haidorfer, an economist for the group, ranked Las Vegas as the hottest lending market for next year, because a burgeoning construction market is turning out large numbers of homes that will need financing. But in his risk evaluations, John Gruenstein, director of forecasting and modeling for PMI Mortgage Insurance Co., ranked Las Vegas as the highest-risk market for lenders.

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