I've seen a lot of posts about folks not being able to secure financing on their property.

The vast majority of lawsuits against Landlords are for wrongful eviction, security deposit disputes, and Fair Housing Violations.

As a hard money lender, I specialize in helping new investors secure the funding they need for their flips, focusing more on the property's potential rather than just the borrower’s experience.

You need to do an inspection to itemize his security deposit, and the less crap there the easier to see the true condition. 

The last tenants at one of my SFH rentals were comfortable securing the property remotely based on the photos and video tour, signed the lease electronically, and sent all move in funds to me electronically before they moved to the area.

Financing - Should we secure financing before identifying a property or vice-versa?

Unless this is an outright eviction scenario, absolutely do not give her security deposit back.

I've read that they take a security interest in your home and their fine print says they can call the amount at any time (though I'm sure other loans may say the same).

You'll also need a way to collect your security deposit(s) and rent.

If the Fed does not increase buying of mortgage-backed securities, the mortgage rates will not drop significantly.