Source: Sue Kirchhoff, USA Today

Federal Reserve Chairman Ben Bernanke warned late Monday that the federal government should do more to stave off home foreclosures that threaten credit markets and the economy, even as a Fed survey showed the percentage of banks tightening credit for consumers and businesses reached historic highs.

Underscoring Bernanke’s point that credit markets are fragile, the Fed’s latest quarterly lending survey for the three-month period through April 17 showed:

•About 70% of domestic lenders have made it harder for consumers to get home equity lines of credit, while about 50% have tightened terms for those with existing home equity loans in the past six months. In some cases, the amount of the loan has been cut. The tougher standards are a response to falling home prices.

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