Why won't banks refi its own loans?

[Trooper]

My primary residence is not underwater (yet) but has a ~95% LTV ratio. The loan was originated by Wamu and is still owned by Wamu. I want to refi my current loan terms with Wamu for the currently better 30 yr fixed terms. I contacted Wamu and they said no thanks (LTV ratio too high).

I just don't get it. I understand why other lenders would pass on the refi but why would Wamu...they hold the loan. Wamu would not bear any additional risk if they refi'd my loan. I'm not seeking a cash out loan...I just want better terms for my loan.

I'm able to pay down the loan to 80% LTV ratio, but I'm choosing not to put my available cash in the sinking house. All my numbers (salary, credit score, etc) are stellar and can be verified.

Anyone know why? Thanks.

[Moe Bedard]

WaMu may just be servicing the loan and not own the loan...........the loan most likely is owned by another investor.

If there is only one loan on the property............

Have you looked into FHA?
HOPE for Homeowners

there is a list to the right of the page that has the FHA approved lenders that may be able to help you........

[Trooper]

Wamu said that they owned the loan...I will reconfirm. If they are simply servicing the loan, than that would explain why Wamu is not interested in an refi.

Isn't FHA (HOPE) intended for those in "need" or "distressed"? I am not in need nor do I anticipate to be in need. I want to save $ by getting better terms on my loan.

[Moe Bedard]

because of the ltv........you may qualify for a normal FHA loan at the current rates...............the link was more to get you to the FHA approved lenders list............even though it says for H4H.........these lenders are approved to do regular FHA loans too...........
List of Lenders Who Are Participating in the HOPE for Homeowners (H4H) Program