It could be a problem with a loan committee , the property or the borrower.

It sounds to me that you did do the right thing- and I don't believe there is anything wrong with flipping it but I would run it past your local ethics committee member just in case. 

I'm running into some headwind now with my lender due to large number of loans I have, so things go through an approval committee now.  

You want to make sure no grandfathering clauses exist for current owner and when a sale happens to you the new owner that goes away.Also be aware that any changes to the exterior or even maintenance  issues likely have to be approved by the local historic preservation committee and it can be VERY EXPENSIVE and time consuming. 

In many cases this can be true and in some cases with seasoned sellers it is not.If an agent had an ethics violation the typical remedy is they have to go before their local chapter board of realtors review committee and might get a slap on the wrist and a fine for their first offense if found guilty of an infraction.For license law infractions which is handled by the state commission it depends on first offender or multiple times and also the severity of the mistake that determines what happens.

Or, is it management by committee with one person doing the leasing, another person handling the maintenance, another person handling the tenant issues, and another person handling the book keeping?

Let's say rightnow they allow renting out, but since they have HOA committee they can introduce a new rule in future to limit rental properties ( I feel lot of investors in bay area buy condo/townhome for renting, so I do see this rule being more and more common going forward).

We're not checking boxes here like Agency loans, we're selling your deal to a human bank committee (old school) who will make a human judgement call.

The test of "doing business" as defined in the negative is not applicable to other questions such as whether the association is amenable to service of process, is liable for state or local taxes or is subject to regulation under other laws of this Commonwealth.For more information, see the Committee Comments to 15 Pa.C.S. § 403.

I was on the interview committee and told the group no thanks.