Re: There's a worrying implication
well, consider this:
a) you go to your bank because you NEED MONEY, because (for some reason) you didn't earn enough and there are expenses
b) The bank checks your CURRENT income and says "no we cannot lend you money because you actually NEED it right now"
Now, the bank WANTS to lend you money, because you make THEM money when you pay it back. So what happens normally? Well, they make a decision based on you, your history, how much of your money has flowed through their bank, what your credit rating is, and so on. THEN they give you an approval based on "all of that", sometimes coaching you to 'fudge a little' so they can "sell you the loan".
This is just business as usual, in reality. The banks want you to pay them because they'll lose money if you don't. But sometimes stupid-regs just "get in the way" and so the loan officers know how to 'adjust' things accordingly to make it work. And it does. And we move forward, pay our bills [most of the time], and everybody's happy, and nobody outside of the bank and customer REALLY NEEDS TO KNOW the details of that process.
Added: business loans and lines of credit are a bit different than mortgages...