Home Equity Lines Doing Well.

The number of home equity loans that banks reported past due increased by 22 basis points in the fourth quarter, but home equity lines of credit are performing better than any other kind of consumer credit, according to data collected by the American Bankers Association.

In the fourth quarter, 1.64% of closed-end home equity loans were past due, up from a delinquency rate of 1.38% in the third quarter. That's the highest delinquency rate for home equity loans the ABA has seen since 1993.

However, delinquencies on home equity lines of credit declined slightly in the quarter. Past due payments accounted for just 0.56% of HELOCs, a decline of two basis points from the third quarter and the lowest delinquency rate among any category of consumer loan.

Keith Leggett, an economist at the ABA, said that home equity lines represent a fast growing segment of the consumer loan market and generally have higher credit scores than other types of consumer credit.

Home equity lines also tend to be larger in dollar size than home equity loans.

"People are opening up lines of credit because it gives them great latitude in terms of when they are going to make withdrawals and use it," Mr. Leggett said.

Home equity lines can be tied to a checking account or a credit card, for instance, adding to the convenience of making draws.