You can expect nonsense like this to continue to increase for two reasons: the increasing felony population in certain cities and the increasing number of leftist politicians that see housing as a right.The main thing to remember is that you can't base a decision on criminal behavior but that doesn't mean you can't reject them for other reasons.

There will be lots of rejection.

If it is legit, you can't reject it.2.

I confirmed in writing that company policy was to not lend to any federally illegal industries, and went a step further to say we will not lend to any crypto or similar industry that could be evading US banking restrictions (and thus BSA/AML regulations).In the end I was given a flat rejection by 3 major banks, 2 credit unions, and two online banks with no chance to explain my case before a credit union (who had told me no originally) saw the light.  

If those offers are rejected, I try my best to come up with a win-win situation for both parties, but if that doesn't work out then it's time to move on.

If they reject it, no skin off your back.  

Most likely it will be rejected, but you just never know. 

We rejected and canceled our offer on one property in Chicago because the numbers doesn't make sense.

In our practice we reject many people that want to use the Flat Fee service because we know they will run into trouble. 

We shared similar values, ethics and wanted to create passive income.Selected a market, and started underwriting deals.Got constant rejection for about a year before we found a great broker.Stumbled onto the Mom & Pop seller, and the rest is history.Built a strong team around us.Think BIG, start SMALL!