Just because a loan is in second position or later does not automatically mean a discount is applied.   

They need to see the listing and know it is a good deal automatically, without doing any research.  

If she is deceased, her share might transfer automatically if the owners held as joint tenants.  

I started renting when values were sliding downhill and so many people never actually figured out that RE values don't automatically go up.

And CA laws are very tenant biased.. they will automatically figure 2 to 3k to get the squatter out.. these are not hold over owners.. these are squatters same as what your dealing with.

The pmi automatically falls off when the loan value reaches 78%.

At least not automatically.

And they don't automatically move down the scale as they age.  

First I called the real landlord and got the information I needed, then I decided to call the landlord name and number on the application.They gave the applicant a great reference, great pay, keep the house up, etc etc,,I ask how long they had owned the house, she said "3 years",,I told her there was an issue because Central Appraisal district didn't show her as the owner,,she said "I just don't understand that, probable a paperwork problem",,I then informed her of the real owners name, and that I had just talked to him,,,she said "did you say 623 xyz street, I own 624 xyz street),,,I said first there was no such address, then I was curious how she gave me a great reference on someone that obviously wasn't her tenant,,,,about that time the line went dead.When the tenant called me later I told her what had happened (I knew she already knew), and told her that lying on the application was an automatic decline.  

To help answer your questions - if the landlord chooses renter pay, the credit report is automatically included, which causes the “view credit report” field to be grayed out.