Even though our 15 year home loan at 6.25% has never had a missed payment, our annual income is over $80K, and we have a strong bank account, the 36 % loan ratio imposed by our bank and Fannie Mae would put us into a 4% + 30 year loan to qualify for a refinance.
Our home is not underwater, with our neighbor's home (comparable to ours) having just sold for over $400K, providing an estimated 30% equity to our existing loan.
If we do not qualify for a sensible refinance, I can understand that problems that people that are not as fortunate as ourselves are dealing with.
The system is broken, and the banks and Fannie Mae need to provide more leeway if the mortgage refinance program is to have any value.