The credit junkie boom is over. A good example is AMEX cancelling cards or drastically lowering spending limits this week simply based on who your mortgage is with, where you shop and what you buy. It didnt matter if you had never missed a payment, had a great job and an 800 FICO.

There are new risk formulas coming out very fast right now all across the mortgage and small lending/credit spectrum. They are not friendly to anyone other than the top 10% of ficos, incomes, assets etc...it makes sense though that we are now over-correcting to the conservative side and was one of the biggest issues IMO with the mortgage related issue which has morphed into a much bigger problem.

There was no risk based pricing. You could get a stated income, stated asset 30 yr fixed loan or a zero down interest only loan at the basically the same rate as someone who verified everything. Back in the day it use to be that if you wanted a loan outside the box you PAID THE PRICE for it ie 1-2 or even 3% higher rates. Underwriting and pricing matrices went to shiat, we drank the coolaid and now are finding it was laced with some pretty nasty stuff.