FWIW, they were bank loans, not agency loans.

Maybe rental agencies that cannot allow people to stay where they are in an emergency are unsustainable?

Firstly, I do have experience in direct mail marketing and social media marketing for my practice as well as a 6 month sabbatical I took working for a digital marketing agency. 

I know they note it will not be reported to credit agencies but I would think during underwriting for future loans they might see a gap and look at that negatively?

There are also churches, SBA loans, housing agencies such as Residential Assistance to Families in Transition (RAFT), friends, etc.

They had assured me they use a title agency that holds the money in escrow, but filling out an application with this company with my social security number and other vital info is what scares me the most.

You need to discuss with a title agency an/or attorney to investigate this particular property. 

Our right to demand earlier paymentWe may demand immediate and full repayment of your loan if:· You gave us false or incorrect information when you applied for the loan; or· You are more than six months overdue with any amount you owe us.If you fall behind with your repayments we may pass information about the amount you owe to a credit reference agency.

Similarly, they sent me a list of HUD-approved agencies, and like you said, no one has a clue what I'm talking about.

You should tell them that he is using multiple agents as it probably violates his buyer's agency agreement.