Some borrowers with good credit and income are starting to feel the pinch as mortgage lenders cut back on home equity loans. The San Francisco Chronicle also points out that consumers are becoming as wary of home equity loans:

But as home prices started to
sink, homeowners had less equity to draw on. Lenders including Bank of
America, Washington Mutual and Countrywide Financial cut back on home
equity loans to reduce their exposure to the housing market.

Sinking home prices also mean that some borrowers, who were once in reasonable standing with their home mortgage loans, are now finding themselves saddled with upside down mortgages. This trend of negative equity is not confined only to subprime borrowers. Many, especially relatively new home owners, are finding themselves affected.