When lenders last year refused to refinance the short-term paper that funded the vehicles, Banks had to take the assets onto their balance sheets, straining their capital ratios.

In addition, the bank handling the refinancing may charge higher fees of its own to compensate for the risk that the loan soon defaults and Fannie or Freddie insists it be bought back.

In the face of more requests for waivers and refinancings, Banks will react selectively.