LAT on prime borrowers

In today's business section, the LAT has a piece about how difficult it is for even prime borrowers to get loans nowadays. The example they use is a man and his daughter who have good credit and who own a rental residence worth $1.6 million which has an existing $600,000 mortgage. The pair want to refinance with a 10-year interest-only mortgage and are having trouble finding such a loan at reasonable interest rates. Well, duh!