Just a little worried with all the negative news about identity theft. 

., a "silent second", is mortgage fraud.

If you fill out a loan application stating that you are married and don't disclose that you plan on divorcing you are committing fraud.

Placing your properties into a LLC isn't going to solve your problem and this could easily be deemed as mortgage fraud.

There are lots of FRAUDS AND SCAMMERS that teach that way to operate.

I know umbrella policies don’t cover fraud, for example, but any other real-world examples?

I actually did reach out to them about a couple properties they have with some identical photos asking for some clarification.

I found out that Quicken Loans was having a "cyber monday deal" that offered identical interest and terms as the credit union deal I was working on, but offered closing costs that were about $2k lower.  

The downturn in year 2008 was 27% due to a lot of mortgage fraud.

It is not a right or wrong deal rather just the differences between identical sfrs in totally different locations or the diff with classic Porshces and Civic/Pinto rentals.