Without a doubt banks have become more conservative in theirunderwriting. Yet, there are still ways that borrowers can tap thiscapital source—even as numerous properties are returned tocreditors. But don't underestimate the uphill climb facingborrowers, says Omar Eltorai, market analyst at Reonomy.

"Banks and other portfolio lenders will likely stay focused onrisk mitigation and workouts, while new origination will use strictunderwriting criteria and will be targeted at the lender's 'sweetspot' or core area of focus," he says.

Right now, banks across the country have tightened theirunderwriting standards by requiring higher debt service coverageratios and lower loan-to-values, while granting fewer exceptionsfor borrowers. "While banks have not stopped lending, many havepulled back hard on originating new construction and developmentloans. But many have also become much more conservative withmultifamily and other CRE loans, too," Eltorai says.