Note that my attorney believes the NC Banking Commission would rule this way, your state may have other regulatory and case history that your closing attorney can investigate.

I think another consideration is the regulatory reliability.

“Rising development and construction costs as well as regulatory hurdles, however, are impeding growth in some markets, causing some builders to look outward in attempt to meet buyers’ affordability needs.”

For an investor in Canada in our legal and regulatory framework you are not required to give a reason for denial and there are important reasons for not doing so, chiefly that the applicant could create some kind of human rights discrimination complaint based on anything that you say.

INVESTORS place THEIR ASSETS AT RISK, PERIOD.All the folks on here who don't have two nickels to rub together want to refer to themselves as investors, so do those with some money who deal in RE or any other business, but they are OPERATORS or DEALERS, they are nothing near an INVESTOR.You and other brokers do all kinds of activities in notes, you use other peoples money in various ways, you also have a license, or I hope they do, and have regulatory oversight somewhere, but individuals must use their own freaking money or assets, borrowing funds beyond their means to conduct note transactions is brokering.I have no idea what may have been said that got that response from you, but if you disagree with what I said here you need to drop way back to some basic legal definitions.The reason so many people on this site don't get it is because they never start from ground level, they assume they know and jump in to something assuming things.

Danger areas can be receivables, facility utilization, pending regulatory actions and code compliance. 

Broker-dealers have historically avoided the part of the industry currently being served by the platforms as well because it is extremely hard to make any money there with all of the regulatory burdens absent some sort of RIA co-investment type model that is supplemented by other sources of revenue.  

You will need to brush up on the regulatory hoops (e.g.

One is the impact on the bank of accepting your offer versus foreclosing, i.e, on profitability, on regulatory compliance, on the stock price, etc.

They also call lines when they no longer want to be in the business of "<insert your choice here>", be the reason economic changes or regulatory requirements.