I assume that this only applies to FHA home loans.
He has no authority over private institutions and mortgage companies.
Since the 2008 housing crisis, all standard loans are guaranteed by the federal government via the entities of Fannie Mae and Freddie Mac. It is nearly impossible to qualify for a mortgage under convention terms unless you are a W2 employee. Of course the government loves that because of payroll tax withholding and it can examine every hind you do
If you are 1099 or a business owner with Owner draw or other non W2 income the government cannot control you. When someone who has substantial income but not W2 needs a mortgage the best place to go is the secondary market. There are plenty of good deals and one does not have to undergo the financial colonoscopy that most people volunteer for.