Issues refinancing investment property

[Eric Bailey]

I have a single-family residence as an investement property that I have been trying to refinance for a while now. The lenders I've visited with have not wanted to do the loan because of Regulation Z. Last quote I received today was 4.125% interest on a 75% LTV on a single-family residence with 3.18 points. They would not do less than 3.18 points and are telling me that they cannot charge more than 3% of the total loan in points AND fees. The quote on fees was $3,100 and the points was $3,816. I don't see how anyone ever refinances a home under circumstances like this. Its getting hard to see how the little guy ever gets started in this business if the greedy banks are going to keep their foot on our throat.

$120,000 loan, property worth ~$160,000, located in NM.  Talked to a local bank and two national banks about refinancing in the last 60 days.  Owe less than $60k on the mortgage currently.  My credit score is right around 700.  

What am I missing?