FDIC: Bank HELOC Lending Up 33%

Home equity lending at commercial banks grew by 33% in 2003 even though consumers were refinancing at a record pace and consolidating their debts.The latest numbers from the Federal Deposit Insurance Corp. show that borrowings on home equity lines of credit rose to $284.5 billion as of Dec. 31, up from $214.6 billion at year-end 2002. In the fourth quarter alone, HELOCs outstandings grew by $23.7 billion, or 9%. "Growth in assets and earnings was dominated by single-family mortgages in the first half of 2003 and credit card and home equity lending in the second half," FDIC chief economist Richard Brown said. The FDIC fourth-quarter report also shows that HELOC delinquencies fell during the year, but chargeoffs rose from 0.17% as of year-end 2002 to 0.20% as of year-end 2003.