Mortgage paperwork nightmare—did you guys see this?

Just read an article about this couple who lost out on their dream home because they missed one tiny piece of paperwork during the mortgage process. Apparently, the bank was super strict about it and wouldn't budge, even though they'd done everything else right. Kinda makes me paranoid now about applying for my own mortgage...like, how picky are lenders really being these days? Curious if anyone else has run into similar horror stories or if this is just a weird isolated incident.