Atlantic financial editor Daniel Indiviglio attributes increasing noncompliance with the CRA to tightening lending requirements.

"But the oil crisis, which comes at a time of an international capital shortage and more stringent lending requirements at banks around the world all work in the direction of a general global slowdown in growth."

State-chartered savings banks in many states only have a 60 percent mortgage lending requirement.

He noted last week that these initiatives would attract the better borrowers, those who could meet more stringent lending requirements, such as being able to muster a 20 percent down payment and document appropriate income levels.

Instead of just saying no to applicants who cannot meet their lending requirements, some banks now steer customers toward factors.

But Citibank, which tightened its lending requirements last year, said that one result was fewer loans to minority-group members.

A group of regulators, including the Federal Reserve, is expected to announce tighter lending requirements for the sub-prime housing market in coming weeks.

One is the more stringent lending requirements imposed by banks and thrift institutions since the savings-and-loan crisis began to unfold.

"Rebates have lost their luster, and everybody's tightening their lending requirements."

Analysts had said the weakness in the construction industry was a result of consumer caution, high interest rates, stringent lending requirements and overbuilding in some areas.