Here is a super article regarding home equity line of credits issued by lending institutions, specifically Savings and Loans.  These lending institutions are arbitrarily decreasing and some times closing home equity lines of credit for you and your customers!  Because of complaints, the OTS has issued a regulatory bulletin indicating when it is appropriate to do this.  Based on the guidelines that I read, a great many of the decreased or closed lines are being done so illegally.  If any of your clients have had this happen to them, please contact bank executive management to reverse their decision. 

 To have a bank illegally take away access to your customers money is a disgrace.  If a customer qualified for a home equity mortgage line of credit, paid for the refinance, and signed the legal mortgage lending documents, they shouldn't have a banker arbitrarily take away this product.

 See the following:

 S&Ls given warning about freezing credit

The Office of Thrift Supervision warns against improperly lowering credit limits or altering rules for home-equity loans.