Financing

I've been hearing from clients who have had their unused bank lines of credit frozen. Previously, it seemed that banks were concentrating on freezing LOCs that had high loan to value ratios. Now, it looks as if they may be freezing products that offer particularly good interest rates, i.e. loans whose rates are at prime minus a 1/4 or 1/2 point.

It's also important to note that condo financing has become more arduous. Fannie Mae has added requirements, such as a letter from a lawyer who has reviewed the condominium documents, that slow the process. The financing is still available; there are just more hoops to jump through.