When you don't need it, it is real easy to get.
When you need it, it is real hard to get.
This is why $1 in the bank is worth so much more than $1 in credit that you can maybe draw on. Especially lines of credit that can be called in.
Lesson learned: take advantage of cheap credit while you can.
If they're capable of paying back that refinance ... probably could have just saved.
I suppose there is a little window of time where it is advantageous if they're laid off again, that seems more like random chance.
I had some credit cards go from 50k credit line to 5k.
My credit was unchanged. They just didn't want 45k of empty credit on their books.
Edit: assuming the borrower is current.