The bottom line is that the Checkbox Monkeys don't just go by some alleged Fannie Mae standard.

If the OP has everything documented and can provide evidence of her allegations, certainly the "wholesaler" that put it under contract will have the opportunity to defend their actions and the state can choose to pursue or ignore the case. p.s.

It sounds like you are unsure about the obligations and rights of the contracted parties and therefore you're susceptible to the whims of the alleged purchaser. 

They never responded to whether the alleged violation was an error but instead I got notice my application was denied.

The document could also be shown to a squatter or tenant (my loans do not allow owner occupancy) to prove to them that they should start paying you (the lender) rather than the alleged landlord.

If it is some type of fraud allegation onto the originators or other agents responsible for the closing and funding of the loan he may be pursuing or investigating an alternative litigation strategy which he should explain to you for your agreement to pursue.  

This is allegedly because of certain features the inspector noted that put my rebuilding cost at a whopping 440,000+.  

But she is getting worse, she alleged that the house supposedly should be one family, while I am renting the basement and upstairs separately.

But she is getting worse, she alleged that the house supposedly should be one family, while I am renting the basement and upstairs separately.

I would allege Conflict of Interest and demand a clear statement of independent Entity, board of directors and management before I would accept the in-house title company