New York - As lenders strive to maintain the torrid pace of new loan originations experienced over recent years, the home equity sector of the ABS market has seen growth in alternative loans. Some of these trends, such as the rise in interest-only mortgages and geographic concentrations, raised eyebrows at the recent investor conference UBS held at the Waldorf Astoria hotel in Manhattan.

Admitting that primary issuance volume "is much stronger than expected," home equity analyst Tom Zimmerman expressed concern over the impact of recent loan underwriting trends, should interest rates rise more rapidly than expected.

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