3 Cities Added to Watch List of Declining Markets

Boston, Cape Cod and the South shore have been added to a watch list of declining real estate markets by six of the nation's major insurers where they seek more stringent lending requirements.

The list which already includes California, Nevada and Florida reflects concerns among mortgage insurers that many buyers were not setting aside a big enough down payment before they bought their homes.

Home buyers in areas on the watch lists can face tougher lending standards covering minimum credit scores and down payments.

The insurers typically use price forecasts to decide which markets to put on their watch lists. Other factors come into play as well. MGIC, for example looks at how loans have been performing in a particular market.