Is this a BS answer from the mortgage bank to my attempt to refi?

[Sheryl Sitman]

My bank reached out to me saying my acct was flagged as a good opportunity to refi at the lower rates.I have a conventional loan on a rental property owned by an LLC. I was already looking into my options so of course said yes, please lower my payments! After a few days, here is what they came back to tell me and it sounds like BS to me. Happy to have someone try to explain this.

"As we discussed yesterday, the reason we were not able to get the loan approved is due to the pricing factors on conventional loans. There are state and federal guidelines that dictate how much we are able to charge in cost. Since the property is an investment property, there are additional points that are added on to the loan based on conventional guidelines and even going with the highest rate, the costs of the loan are not meeting the high cost guidelines."

[Nicholas L.]

Hi @Sheryl Sitman I've had the same thing happen to me.  A bank will call me telling me I'm a great candidate to get a refi on one of my investment properties, then they'll put me on with a loan officer who tells me the rate I already have is about as good as it gets for an investment property.  I have to remind them - YOU CALLED ME!