I just received a letter from my bank advising me that they have frozen or reduced the amount of my Home Equity Line of Credit (HELOC). The letter explained that the action was taken because the value of my home had declined. Is that legal?

Federal law permits the bank to reduce the credit limit on your HELOC or to freeze your account and stop additional extensions of credit in certain specified situations, including if there has been a “significant decline” in the value of the property securing your loan since the HELOC was approved.