Home equity specialists at an asset-backed securities conference here insisted that last week's sudden bankruptcy filing by Southern Pacific Funding Corp. was not a sign of things to come for their industry.

But there was a sense of caution among loan buyers, and speakers urged home equity companies to take a more conservative approach to the business. Like many home equity lenders, Southern Pacific of Lake Oswego, Ore., relied on a combination of equity investors, bank loans, and securitizations to fund its business.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.