According to Bloomberg, banks are really tightening up on loan approvals across the board.  The low interest rates are boosting the amount of loan applications, but according to this article it is getting harder to get that loan.  You can imagine that the banks are a bit gun-shy after what has happened to so many lenders, I hope this doesn't spoil what the government is trying to do by lowering interest rates; nothing like offering a great interest rate, but few will be able to get a home loan.

The article in Realtor.org states that a survey showed, "55 percent of banks toughened terms for prime home loans, up from 40 percent in October".  More...