Is it just me or are banks declining EVERYONE right now unless they have perfect income + perfect credit?

I’m seeing homeowners with $500K+ equity getting declined over minor issues — self-employed income, old collections, CRA balances, etc.

The crazy part?

Private lenders like Lendworth are approving these files in 2 hours with no income docs and no credit score needed.

Are banks tightening across the board… or is something bigger going on in the mortgage industry?