About a month ago, before going forward w/ the refi, I called Chase to specifically ask about whether we'd be jeopardizing our HELOC in any way in the subordination process, and was reassured by 2 people there that as long as our appraisal confirmed that we retained an 80% CLTV on the borrowed amount (we did), all would be approved. Now they're saying that all subordinations and new refi's are going at 60% CLTV, not 80%, since they changed their policy in January 09. So we got bad information from their people about our HELOC subordination, and now they've sent us a form to go forward, which characterizes the credit decrease as a REQUEST for credit decrease by us!! Not a decrease in credit initiated or imposed upon us by Chase, but as though WE are asking for this, which we are NOT!! We don't want to sign this form, and I've called them and requested they send us the appropriate form that accurately states the current conditions of the decrease in credit adjustment. We are not requesting a downgrade in credit, Chase has changed their policy and has informed us that our credit line is being cut. The upshot of this whole ordeal is that if we can't come up with enough money elsewhere to do this remodel, we'll have to refinance our HELOC at a higher rate. On the form it specifically states that in order to increase the credit line, we'd have to reapply for a new HELoc with them (yeah, that's gonna happen!). thanks a lot! We're losing more than half of our credit, and if we want more later, we have to give up our lower interest rate by refinancing at today's rates, 1-3% higher. While clearly the bank has the right to decrease credit lines in this economy, do they also have the right to expect clients to sign documents that falsely state the conditions under which the credit line decrease is being imposed? What can we do here to solve this dilemma? We qualify financially to pay what we owe, and our remodel will increase the value of our home. We feel like Chase is reneging on our credit agreement, by stating that, if we agree to (or in Chase's terms on this bogus form, request to..) this cut in credit, a future increase in this credit line will not be an option, regardless of whether it is within the range of our current credit limit that we have held for 6 years, or our CLTV improves.