They say banks have been unwilling to finance new mortgages for the condos until a new developer is found.

"Historically, Connecticut had very conservative lending practices and would only finance F.H.A.-insured mortgages with no risk for bond holders."

Borrowing for longer terms - to finance mortgages or industrial loans - remains problematic.

Banks began to finance residential mortgages through securitization in the late 1970s.

And it has asked banks not to finance mortgages for more than 70 percent of a home's purchase price.

Foreign currency mortgages can be used to finance both personal mortgages and corporate mortgages.

Moreover, a highly regulated structure cannot finance mortgages at the same low cost to borrowers as a highly competitive one.

For those projects, either the city or the state issues bonds to finance low-rate mortgages.

Also, since savings institutions use short-term deposits, with rates adjusted upward frequently, to finance long-term mortgages, which rarely are adjusted, the industry's profits can be severely squeezed when rates rise.

The UPAC increased private savings and thus the resources available to finance mortgages, boosting the construction sector.