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Federal rules are deterring banks from approving more home loans
Federal rules are deterring banks from approving more home loans

By most measures, the housing market should be roaring. Prices are leveling off. Borrowing is cheap. Even the job market is recovering. And yet home sales are on pace to fall this year for the first time since 2010. The torturous experience of home buyers such as Kalmele and Aaron Brown may help explain why. The couple, with solid jobs, pre-qualified for a mortgage a year ago and quickly found their "dream house." Just like that, they had a contract. Then came the hard part. Getting bank approval took endless rounds of paperwork and intense scrutiny from underwriters. To bolster their application, they paid off an old student loan and beefed up their savings. They missed...

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