The key here, neither the Loan Officer or Processor can make a final call on whether a document does or does not prove the concept on application.

Failure by the owner to comply with any part of the law is an infraction that can result in a fine of $200.00 per violation.Full article here: http://www.aoausa.com/magazine/?

Cozy is backed by Google, generates revenue, and has some of the biggest investors in the industry.Intuit is a fine company, and I'm sure it works well for rent collection.

They haven't made a final decision yet....my dad's considering being his own GC and coordinating subcontractors to minimize the cost (he has some construction experience and a bit more free time on his hands).

Madison county and Rankin to be specific.I also paid a MS state attorney 2k for an opinion letter that I would be able to use Go Zone tax benefits which I could.. and then I went there and bought direct from reputable builders once there were C of O's and I could do a final walk through...

and rent the house by January 1st.Assuming your tenants pay AND leave the house in excellent condition, you may find yourself with a security deposit in your pocket you can bank for future repairs.On a final note, and you may know this but for the benefit of other new investors,  using the judicial system should be a last resort. 

Security Deposits are the tenant's money until they vacate the unit and a final accounting is completed. 

Better yet, hopefully the real estate attorney will tell him to go see a finance and banking type, but that's almost like admitting they don't know anything, that's unlikely. :)

Is this typically a fineable offense by the city (Portland if it is against code)?

As to a small company, closing companies are highly regulated, insured and bonded, even if it's a one man shop, it's the title company that insures and they are approved through the state insurance commissioner, so I suggest you just make sure they are authorized agents of the title insurance company and if so, you really have very little risk, your checks should be disbursed the same day of closing if you close in the morning, so they can get a final clearance.