According to the Mortgage Bankers Association, applications were down about 11 percent last week due in part to the holiday and during a week where there was little change in mortgage rates.

Last week, some lenders began taking applications under the Obama administration’s Making Home Affordable refinance plan – the program that allows homeowners with good credit to refinance their mortgages up to 105% percent of the currently appraised value.  So why wasn’t there a flood of applications? Some homeowners say lenders advised them to wait and apply in a few weeks or months.  Others say lenders are asking for large fees.

Some banks had to wait for Fannie Mae and Freddie Mac to update their loan-origination software.  Also, Fannie Mae says borrowers may refinance with any lender they wish. However, if the mortgage is insured by Mortgage Guaranty Insurance Corp, then MGIC requires the loan to be refinanced with the current lender. These kind of conflicts are slowing down the refinance process.