Lender won't accept property in LLC name

[Julian Illingworth]

Bought a duplex in november, all cash and in my own name.  

Now going through a cash out refinance process, and the lender won't allow me to transfer title into an LLC that I have created for my investment properties (hopefully more than one soon....). I've told them my wife and I will give a personal guarantee on the loan, which in my mind removes the lenders risk of not getting repayment. Obviously we want the property in an LLC to reduce tenant lawsuit liability etc, and my wife is especially aware since she is a doctor and lawsuits could adversely affect her career.

Is this a common issue, or do I just need to find another lender?  

The lenders agent (not a broker, actually works for the lender) I have been talking to told me on the phone yesterday to simply transfer title to an LLC after we close, and that the lender wouldn't know unless they did an audit if we fell behind on payments. I asked what would happen if the lender did find out, and he said that payment of the loan in full would required (or at least be enforcable via the loan document). I then asked, OK hypothetically I do this, and then the lender finds out, do they enforce that, or is it just a in the contract that they CAN do that. He is checking with his higher-ups.

Seems ridiculous to me that someone working for a lender would suggest to basically break the rules.  Any info or experience people have with this would be greatly apprceciated!

Thanks