Those costs would likely be identical on a $300K loan for a higher priced quad.

When you do provide it (e.g. applying for loan in your own name), make sure they are a reputable company.Unfortunately identity theft is a real thing and can really screw up your life for year and years once it happens.Oren

You would think they would have a way to check for fraud now days with the advancements in technology and if it’s such a problem why don’t all the loans have this rule.

If it is done separately from the sale the only reasons I can think of would be some kind of fraud.

If they're concerned I'll lose some or all of the account value at the same time as I default on the loan, they could roll the contribution money into an identical account at their institution where the only investment option is cash (or whatever they consider safe enough). 

Then looking closer, I see that there are two identical neighboring triplex for sale.

(obviously my mistake) So 2nd time almost identical issue, on the 5th tenant came by after hrs with no phone call or acknowledgement that they had left payment except this time we saw the car leaving so i called (of course no answer) but left a very stern and detailed message about how this was not acceptable and no longer will be tolerated. 

This terms look identical to some portfolio lenders I've come across.

Loan officer then suggested they switch to owner-occupier and find someone to sign a bogus lease on their current home (mortgage fraud).

I know your probably not exeprinced at this.. and I am happy you posted this.but this person is just out to suck money out of you and never fund.. 95% of lenders on Facebook are frauds frankly.. its really tough on the good guys.Lindin same thing.. and BP has there share of frauds.. so be careful.