The operational problems at Westpac's home loan centre in Adelaide may be improving, but they are still creating headaches for the bank.The bank has cut the expected delays of six weeks in processing home loan applications (for loan applications submitted through the typical mortgage brokers) to nine days.One factor in the delays, according to advice from Westpac business managers to brokers earlier this month, is that "application numbers reached record highs" creating "an unprecedented pipeline in the system".Westpac's more accommodating stance on lending policies is certainly driving this demand.It is also leading to the occasional public relations flap.The Herald Sun today reported that Westpac denied some customers the advertised fixed rate home loan of 4.99 per cent, an offer heavily promoted in December. The bank instead amended final contract documents to a higher rate of 5.49 per cent.Westpac told the newspaper the bank erred in one case raised with the newspaper, but said its advertising was not misleading. The bank described this as an administrative error.