The Federal Reserve of the USA released a survey showing that "significant numbers" of lenders have tightened their standards for mortgage applicants.

The Fed's survey, which called on the loan officers at 56 domestic banks and 23 foreign banking institutions, found that for a "prime" loan, 55 percent of domestic lenders, compared with 40 percent in October, have increased their scrutiny of potential borrowers.

Banks are indeed even tightening the lending standards for loans other than credit cards.

Interestingly, as banks make it harder to borrow, the demand for loans has decreased — consumers perhaps realising it's harder to get a loan and so preferring not to ask.

In many cases lenders are wanting to help homeowners struggling with their mortgages, but in the current circumstancea are finding this difficult.

The survey also showed that a majority of lenders expect the situation on mortgages, credit card and other loans to deteriorate in 2008.