DH,
The major shift that you are seeing now is on the back end for loans that were originated with loose standards. They are being generous on the back end now because they don’t want to foreclose if they can keep a FB buried in their debt. Mods are very different than originations.

On the current origination side, a low LTV, low DTI and high score doesn’t get a quicker approval than a marginal loan. Conforming approvals are computerized and the answers are spit out within 60 seconds, even for a 680 mid score, 50% DTI and 80% LTV… the rate is the same as a 780 score, 25% DTI and 50% LTV.

I don’t know if there are any conforming lenders that “carry their own loans” today,, virtually all get sold to FNMA, FHLMC or FHA. There are very few exceptions granted, if any.

There are people with high credit scores, low DTI’s.. BUT no equity. When upside down, there is no chance of a refi with a new lender. Many people have not grasped this reality yet.