"Everybody wants to say the sky is falling," says Thornton. "I think they're being prudent. They're watching the markets. They're watching supply. It's not a sky is falling situation."

Jonnie Pardue, executive vice president of Dallas-based Malone Mortgage, handles FHA loans for the multifamily sector. Her business is pretty well regulated in terms of upfront requirements. "Because we underwrite the property, there are certain requirements of the borrower," she says, such as an 85% to 90% loan-to-value ratio.

The national economy hasn't deterred borrowers from looking for new construction funding or refinancing. Thus far this year, Malone has completed $185 million in transactions, primarily for new construction. What Pardue has noticed is that more of her firm's borrowers are having a tougher time coming up with the necessary equity than in years past.

At Bryan, TX-based First American Bank, each loan request stands on its own merits, says Bill Atkinson, president and COO. The lending institution keeps a tight rein on office project financing even though the lending policy really hasn't changed in the past year. "When you have an oversupply, you are worrying whether new projects make sense or not," he tells GlobeSt.com. That's where the case-by-case review comes into play and credit worthiness and project viability are the determining factors, emphasizes Atkinson.Pricing, he says, is based on risk assessment. "We deserve to get paid for the risk we're taking," Atkinson stresses.

None of the lenders are overly pessimistic and all report a deal flow consistent, if not better, than last year. Yes, the Texas economy is slowing, but it's considerably hardier than most of the rest of the nation. Still, lenders aren't being frivolous with their dollars despite today's attractive interest rate. Two decades ago, Texas threw caution to the wind and kept borrowing and building until the bottom fell out. That's not the case today as lenders and developers alike watch what comes to market to avoid history repeating itself.