I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

The official answer: The Corporate Transparency Act is intended to provide law enforcement with beneficial ownership information for the purpose of detecting, preventing and punishing terrorism, money laundering and other misconduct through business entities.Uncle Sugar requires us little guys to register and be tracked even though 99.999% of us are not involved in terrorism, money laundering, or other misconduct.

You often see them in coastal areas where the houses are on stilts to prevent damage from king tides or storm damage from flooding.They were a way to do foundations pre-1900 in a lot of areas, especially here in the northwest.

Do you remove the roof from your houses because roofs do not prevent flooding?

Also I don't think it's that clear that any of these tactics would actually prevent the bank from enforcing the due on sale. 

Because you state your goal is to prevent liability I don’t think the LLC will do you any good.

You may not collect anything, but it will sit on his credit report and prevent him from getting a car loan, home loan, or scamming another landlord.

It drives me crazy when I hear these stories preventive maintenance is what should be practiced and discussing all avenues of the deal and the borrowers docs in advance.   

These rules are designed to prevent borrowers from repeatedly using FHA loans for investing.

Same thing happened where I am in areas where there were fires that destroyed towns or in areas where hail storms are more frequent.As for blame, there is no point blaming anyone, just learn from what happened and try to prevent it again (not fires because they will happen, but things like running out of water) or reduce the damage if it does happen again at that scale.