The present invention relates to latex compositions comprising hydroxyethyl cellulose grafted acrylic polymer emulsions and methods for preparing same without gelling or coagulation. The latex composition comprises at least about 0.2% of HEC by weight relative to the monomer weight, contains at least about 45% solid, and the average mean volume (mV) latex particle size is in the range of about 320-about 850 nm. Paint compositions incorporating the HEC grafted acrylic latex show high viscosity at static conditions and have no color flow and no syneresis compared paints containing a latex without HEC grafting. The present invention also relates to a cross-linking mechanism that cross-links latex particles at ambient conditions. This cross-linking mechanism comprises diacetone acrylamide (DAAM) and methacrylamide (MAM) with or without styrene.