The pendulum has swung the other direction. Banks have been blamed for being too lax within their lending practices in the past, having given mortgages to millions of people who couldn’t afford them and contributing to the foreclosure debacle. Now, they’re being cited as being too restrictive. Some real estate brokers are now saying banks are too tough on condo buyers, thus preventing the housing industry from finding stable market ground.

A Wall Street Journal article yesterday noted that more than one in four mortgage loan applicants don’t get approved. This statistic is founded on data from the 10 largest mortgage lenders across the nation.

Denial rates varied across the country. In Massachusetts, the denial rate was 23.7 perceent, slightly better than the national average. Texas, Vermont and Mississippi residents are having the toughest time of all getting credit to buy a home. More than one in four mortgage applications in those states are denied.

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