Efforts to revive the private secondary market for home loans could stall this year as investors reject loans at unprecedented rates because they do not comply with new regulations.

More than half of all home loans originated today have minor errors that are not compliant with the "Know Before You Owe" consumer disclosure rule that went into effect Oct. 3, according to Fitch Ratings. Roughly 5% to 10% have major compliance problems, while just 25% to 30% are fully compliant, Fitch said.

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