With $2 million in retirement assets and a stellar credit rating, Art Grossman should have breezed through the refinancing of his house - but there was one sticking point.

"I'm not working," says Grossman, 61, who was previously employed in the financial services industry. "I have severance, but that runs out in April."

Mortgage brokers see problems like this again and again with clients who need to demonstrate a steady income stream and stellar credit, the two biggest stumbling blocks.