Being self-employed, in the banks' eyes, I make $0.
And the reason why you understand is that no matter how much money you make and no matter how long you've made it, if it is self-employed income, it's not "real" income. Banks don't consider it "real" income unless you're miserably slaving away for some other schlep.
Ergo if you are self-employed it's very difficult to get financed, refinanced, or any kind of financing from banks in general.
But for those of you who are trying to get refinanced, haven't missed a payment, or could make a payment if they just modified your loan, but are constantly getting turned down here is the explanation why.
Now it is somewhat of a detailed and mathematically lengthy explanation, but just try to follow through with it. Regardless, the larger point is notice how once again, the government solution has failed to bring about a recovery in the housing market. And not only failed, but made it more or less impossible to help those they claimed they were trying to help.