The forward flow agreement with the institution is for whole loans, not the ones that are invested in fractions by the crowd online.We are working really hard to get more loans because there is so much demand and we are trying to satisfy everyone's needs.  

I also had penalties for additional management required based on an hourly rate or a fee for infractions of the rules.

Also do thorough checks with the municipalities and county for any other outstanding liens, open permits, violations, code infractions, etc.  

Subjective reasoning means everyone can decide which infractions they will let pass and how much value those transactions have.

No name calling, no emotion, just a factual account of their infractions. 

Before seattle changed its rules and I hired a property manager,   I used language in my qualifying criteria to basically say that if a criminal record was present it must not reflect a pattern of repeated infractions,  must not have been for any violent crime or type of crime likely to impact landlord property, other tenants, or the landlord;   any not yet completed incarceration, parole, restitution, etc must not present an obstacle to paying rent and maintaining compliance with rental agreement, and there must be evidence of stability/mitigation, e.g. gainful employment, attending school, or some other constructive activity occurring after the conviction.But again, might be good to consult with attorney OR work with a local snohomish county property manager or landlord group who know better what is going on there.Again I would also seriously consider having floor on credit score.   

DBPR can fine, suspend, or revoke licenses for infractions.

In this day and age of heavy government interference in the market, of legal actions being brought for the slightest infractions, of lack of personal responsibility, it is suicidal to enter into a loan agreement as a lender without legal representation.Also, in reference to the advice given about the proposed transaction not having to comply with consumer protection laws; if the borrower decides to move into the house and make it his primary residence, and resides there more than one year, you will have to comply with certain provisions of the act related to making a good faith effort to modify the mortgage AND will have to comply with state homestead laws, all of which MSY be avoidable with the proper documentation executed by the borrower.  

Are you going to be able to make good decisions unclouded by emotion (both for your own good, and to do right by tenants who you KNOW won't report any infractions you commit?)

It's imperative that you require access to prior year state and federal year tax records, license documents, insurance cover pages and even check with your Secretary of State, Attorney General, and local health departments from where they are coming from to determine are they legit without infractions.