However, my concern is:  would my parents be committing fraud by getting a HELOC, and then turning their primary into a rental just a few months later? 

It’s fraud in the beginning.

I offered them a lease, few hours later after some technology hiccups, she forwarded an email to me with that same email address she used for her landlord reference.I immediately told them this is fraud and cancelled their lease.

The NC Secretary of State has what they call an eNotary, but "the process maintains the traditional safeguards of requiring the eNotary and the signer to be in the same physical location and for the identity of the signer to be verified by the eNotary." 

They aren't the cheapest but are less likely to commit fraud like what you have described.

Secondly, transferring property doesn’t erase prior deed and mortgage records so your identity is not cloaked in secrecy.

I thought it was fraud, but the insurance company paid it.

This is one of the most egregious frauds in the industry.

We've since changed over to IGMS which is almost identical to Guesty but lower costs.

I am becomming more and more concerned with fraud.