Builders said Monday at a press conference in Tallahassee that banks and other lenders are hoarding federal bailout money while calling in good loans, eliminating lines of credit and in many cases doing away with construction financing altogether.

One Florida builder told of being denied financing by 15 lenders when the Federal Deposit Insurance Corp. demanded repayment in 60 days after it took over a bank where he had a $2.5 million line of credit.

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Builders said Monday at a press conference in Tallahassee that banks and other lenders are hoarding federal bailout money while calling in good loans, eliminating lines of credit and in many cases doing away with construction financing altogether.

One Florida builder told of being denied financing by 15 lenders when the Federal Deposit Insurance Corp. demanded repayment in 60 days after it took over a bank where he had a $2.5 million line of credit.

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Builders: Banking practices driving them to ruin

By Staff | Nov 24, 2008

TALLAHASSEE, Fla. (AP) _ Florida home builders say they are being driven to ruin by “extreme” banking practices.

Builders said Monday at a press conference in Tallahassee that banks and other lenders are hoarding federal bailout money while calling in good loans, eliminating lines of credit and in many cases doing away with construction financing altogether.

One Florida builder told of being denied financing by 15 lenders when the Federal Deposit Insurance Corp. demanded repayment in 60 days after it took over a bank where he had a $2.5 million line of credit.