However, in regard to FHA-insured investment properties, I was able to find the below clause, which is somewhat revealing as to how this would likely be viewed in the case of an investigator sniffing for fraud in an owner-occupied property."

I had started investigating it a week or so ago and had not been able to find much definitive information regarding if it was actually active or not.

I would research the property find out whos living there and send rgem a letter with your intent .. ask tgem if they would be willing to accept or talk about a offer to move out once you take possession .. there is no law that states you cant talk to someone at the corner store or at there work .. it may be worth the few hudred bucks fir a investigator to give you that info .. it all depends on how discounted the oroperty is .. .. the numbers dont lie .. 

Thanks for you response @Andrew Syrios Definitely is a concern of ours, but will be extremely vigilant when investigating any  turnkey companies if we decided to go that route.

I investigated alternative banks several years back.

I am hesitant to move forward due to this finding but am motivated to investigate further to discover the true costs of replacing that.

The products I investigated were:1.

The risk for the bank is to get up to $160,000 fine per account not reported and further investigation would be conducted at the discretion of US to determine if penal liability (prison, billions in fines) apply. 

This is a great place to learn and further investigate investing in real estate.

If Plastic I would investigate further.