I've seen/heard people getting more competitive bids in the higher risk markets, but yeah I do think the subtle increases 2-3% are a bit aggressive. 

Also running an STR business is not just as easy throwing it on Airbnb anymore, it is a competitive business. 

I think it is due to the rent prices and the lack of density.

We don't need income docs or anything of that sort and our rates are competitive with banks. 

A lot of people seized the opportunity with students because of the medical school but that area is now saturated with over priced student dwellings.There is still a market for STR geared towards tourists but the competition has increased on the tiny island. 

Long term tenants and lack of or low amount of vacancy is a key issue to profitability. 

The lack of clear communication from the lender left us in the dark, wondering if this deal would ever see the light of day.The night before closing, we were still in limbo, with no confirmation that the deal would go through.

Lack of performance I would say. 

But then off the list, I imagine the property values went up and/or the new competition drove the ADR's down. 

While some lenders focus on minimal documentation and fast turnaround, they often lack the flexibility and understanding needed when challenges arise.