Home equity lines of credit are finally beginning to dry up as banks see them as an even bigger risk than a first mortgage. The process cancels consumers' available credit and prohibits consumers from making additional draws against any unused credit line. In the past, lenders use to hike the borrowers rates as soon as they detected trouble in other accounts, but now this practice has come under scrutiny by Congress and they are being forced to cancel these lines of credit altogether. Countrywide became the first bank to do o after notifying 122,000 customers that they can no longer access their credit. This is a trend that is only likely to continue..

From CBS News:
When the real estate market was booming, millions of homeowners suddenly found themselves "house rich," using home equity lines of credit to cash in on their homes' growing values, and financing everything from remodeling projects to vacations. But now, people with a line of credit may be in for a surprise: Lenders are blocking the money pipeline, refusing to loan borrowers any more money. In this column, The Early Show's resident financial adviser, Ray Martin, explains why it's happening, and what recourse homeowners have.