ridiculous excuse of not lending, page-8

You are right Free Will they have the right to lend money how they want. I think the annoying thing that is being experienced here is that they should be more upfront on what they are willing to lend on i.e. they only want properties in condition x, lending ratio y etc. If the key conditions were there many wouldn't waste their time with the particular lender and the lender wouldn't be wasting their time processing the request.