You should consult with a landlord attorney in your state to get solid legal advice on this issue.

As tenants get more savvy about these new laws, they are more likely to call legal aid if you do not follow those requirements to a T. 

Properly addressing these aspects will help you avoid any legal or financial issues.

I'm not an attorney, so I defer any legal specifics to an attorney.

Is there any legal ramification?

The agent that signed those contracts has a legal and moral obligation to explain the contract to you, which would have answered your questions.

Does he have assets he (or perhaps you) can access to be compensated by - either voluntarily or if you end up in a legal fight. 

I don't think they do much vetting unless there is a complaint.

Without speaking to that, they are not answering his question.I was waiting for someone to point this out as I read the replies.most HML’s will require the buyer to use an LLC so it Can’t be a primary residence, which they can not legally lend on.

Not speaking from a legal perspective, but I've done this several times and have never had an issue.