Countrywide Freezes Lines Of Credit For 122,000 Customers - Follows WAMU

Countrywide freezes HELOC's for 122,000 customers: Others are sure to follow?

Looks like lenders are becoming proactive about reworking - or simply 'unwinding' - Home Equity Lines Of Credit (HELOC). Countrywide froze HELOC's for 122,000 customers, notifying them that the total debt(s) on their property exceeded the estimated market value. Freeze is retroactive to January 25, 2008. This follows WAMU. Others are sure to follow.

Hmm, is that going to help or hurt Countrywide, et. al.? WIll certainly hurt those who were living off their HELOC - but does it make more money available for new lending or lending to those with a lower LTV since the amount of HELOC funds available must be held in reserve by the lender? Or was it brought about by the pending BOA merger?