Many mortgage borrowers have interest rates well above those available in today's market, but can't refinance profitably. One common reason is that their property values have declined to the point where a new loan would require mortgage insurance. A second reason is that they are self-employed and cannot meet the tough income-documentation requirements that now prevail. Still a third reason is that the borrower's credit score has either deteriorated or no longer meets the higher scores that are now required.
These borrowers face real problems for which there are no easy remedies.