I watched a you tube video of this wholesaler telling about the first time she got scammed on a JV deal.

I consider this a maintenance scam.

I don't think most wholesalers try deliberately scam end buyers; if they happen to make obvious mistakes (they could have avoided) maybe they needed more time to self-educate and ask questions, research and learn more before getting their feet wet.

For example, not qualifying a buyer in some rent to own, take  it  back, rinse and repeat scam. 

I'm sure you're a very intelligent women.DO A GOOGLE SEARCH ON "FORTUNE BUILDERS REVIEWS," "FORTUNE BUILDERS SCAM," "FORTUNE BUILDERS LAWSUITS," ETC.I cannot vouch for FB's credibility but I can tell you by doing the very thing I'm suggesting for you to do that my wife and I dodged a $52k+ missile and subsequently found Bigger Pockets.ALL THE REAL ESTATE INFORMATION YOU NEED TO SUCCEED IS FREE!

They got the info from the county website on the note, and they set up a fake company with a name that was similar to the owners of the note.Their documentation was weak and signatures were like what you see on Nigerian scam letters.

This is a scam to profit LENDER's who want higher rates from 'investment property loans'--- the ONLY type of loans one can apparently take out on Duplexes in Texas, and only on NON owner-occupied multifamily.  

Your post was the first I've seen that actually named a specific type of insurance.These scams tend to be from unknown lenders found on anonymous lender website lists.

What about all the real estate scams over the years land deals Florida  swamp land etc.

Servicing is a scam IMO.