I’m well aware of what goes on but I don’t see how it’s possible for anyone who had “a bankruptcy AND foreclosure” in the last 6 years to have bought another house since then AND have enough equity to do a cash out refi recently.

I don’t doubt that you have ‘personally heard’ about 4 different people doing this but do you happen to actually know any of them ?
I’m just curious. I’d like to speak to any one of the four and understand how they did it.