If you were refinancing a loan it means that you had an existing loan with another lender (I assume) and had purchased the property and held it for a period.
If that is the case your property would appear to have fallen in value since you purchased it. Depending when you purchased it and the area it is located would provide a better context to your story.
Specifically, for example, if you bought it say 5 years ago and it has fallen in value it would appear you paid too much for it and / or bought in a really, really dud property and / or in a dud area.
If the facts are as presented, the bank has been irresponsible.
