Home equity lending is still growing at a pretty fast clip, but it has slowed considerably over the past six months, according to the Federal Deposit Insurance Corp.An FDIC earnings report shows that commercial banks and thrifts held $533.8 billion in home equity lines of credit on their books at the end of the second quarter -- a 5.1% increase from the level recorded in the first quarter. In 2004, HELOC borrowings grew at a 41.8% annual rate, raising regulatory concerns and warnings that lenders should tighten underwriting and risk management practices. By the end of the first quarter of 2005, HELOC borrowings slowed to a 34.9% annual growth rate. Now the second-quarter report shows it has declined to an annual growth rate of 28.4%.

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