The percentage of mortgage applications rejected by the nation’s largest lenders increased last year, spotlighting how banks’ cautious lending practices are hampering the nascent housing
recovery.

The number of mortgage applications rejected by the nation’s largest lenders rose to a record high in 2011, according to a report released Tuesday by the Mortgage Bankers Association.

The percentage of mortgage applications rejected by the nation’s largest lenders increased last year, spotlighting how banks’ cautious lending