A few things I have learned the hard way is common sense does not exist in landlording and once you let a behavior go or be nice, you usually can't come back.

A warning will never, ever change that behavior.

If the title is clouded (liens or encumbrances) or it turns out they didn't have the right to sell it, you have no recourse with the grantor short of fraudulent behavior.

I was reading another forum and people were defending this behavior as a form "social justice".

I can say that Im truly shocked and hurt by this behavior.

As far as assigning an explanation for the lenders behavior I seriously doubt It has anything to do with your employment, they are just not that sophisticated.

As landlords, I think, we are doing a disservice to each other, because cash for keys promote this kind of behavior.

That kind of behavior can get all the involved parties in unnecessary trouble.  

Properties last 1-3 days on the market and people are over-paying hoping for appreciation... seems like 2007 behavior.

Its been said here many times, a good percent of landlording is managing human behavior and if you let this tenant continue to mess up your property with no repercussions, you are enabling bad behavior.