Countrywide Financial has halted withdrawals on some home equity lines of credit because owners have little or no equity left, reports the Los Angeles Times. In some cases the owners owe more than the home is worth based on Countrywide's computer modeling. Other lenders are taking similar actions. USAA Federal Savings Back has slashed credit lines in at least a few cases, and Chase Home Lending, a unit of JPMorgan Chase & Co., is tightening its guidelines on HELOCs.

Boy, such a move can be a shocker to folks who were sold on the idea that a HELOC could be a safety net for a rainy day, especially if the rainy day has arrived in the form of a job loss, illness or some other special circumstance. I'd like to hear comments on this one.