Property values keep falling and different regulations are being made in regards to interest rates, repayment options, etc. In light of this, lenders are getting more and more reluctant to give loans to home buyers in areas where the market is particularly suffering. They have even went so far as to stop making loans in specific areas or for certain house types, such as condos in Las Vegas and the South of Florida.

Some of the lenders using these new courses of action are Vertise (a unit of Wachovia Corp) and Bank United (part of BankUnited Financial Corp) BankUnited FSB in Florida, recently made a "nonpermissible condominium project list" which had over 191 condo developments listed that were not to be financed by the bank. Countrywide Financial Corp., almost joined in but decided against it. They were going to put an end to their Alt-A mortgages with Condos. These loans are normally provided to buyers who have good credit, but do not necessarily have full documentation.

This is thought of as a type of blacklisting, which is obviously not good for any home sellers, as no one can get a loan to buy. Of course, this only makes it more difficult in the long wrong, as mortgage credit will start end and then home prices will fall even more. The only ones that this kind of practice can benefit is those who want to buy that have a large cash store; if no on else can get loan approval to buy, prices will keep falling and those with cash can get a great deal.