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Some officials at the agency, who opposed the tightened standard, said privately that the high rejection rate for the housing aid program demonstrated that thousands of needy families, facing eviction or foreclosure, were unable to meet the stricter standard.
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(Congress has not tightened standards for cars in more than thirty years).
The percentage of United States branches of foreign banks that tightened standards rose to 64percentt in October from 50percentt in August.
Increasingly last year, said Martin S. Fridson, chief high-yield strategist at Merrill Lynch, bank lenders tightened standards, squeezing the weaker borrowers.
Some states have improved notification procedures and some have tightened standards for testing water for pathogens, but others have not.
One in five banks in the new survey reported that they had tightened standards for credit card and other consumer loans over the three months, the Fed said.
"We have tightened standards across the board as we have seen deterioration in the market and our loss rates go up, particularly in small business," said Mr. Lewis.
By late last year, the savings rate for this group had improved, but just to negative 7percentt and mostly because tightened standards made loans harder to get.
Just over half of domestic banks reported that they tightened standards on commercial lending in April in a Federal Reserve survey, up from 30percentt in January.
By late summer, a majority of the nation's lenders had tightened standards for every type of credit, the Federal Reserve's bank surveys show.
During the Clean Air Act debate 20 years ago, the Edison Electric Institute warned that tightened standards would lift electricity prices by up to 13 percent by around 2009.
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