Not sure how many loans you have originated this year, but make sure you are Dodd Frank compliant as this is his primary residence.

Make sure that your LC prohibits this and limits the use of the property to business purposes.My notes have been for 3 year terms with a balloon at the end of that term (that would not be D-F compliant).

This of course assumes you have your own skin in the game by having installed LED lighting, water saving toilets, watersense rated fixtures, energy star compliant appliances, and have inspected your piping for leaks.

I'm curious as to your desire to go out of your way to make it fully compliant.  

Better see if they are compliant with the Patriot Act as a borrower can get tied up in money laundering too!

I paid Sense Financial for setup documentation, and there's an annual fee to remain compliant, but that's about it.

My tenants state they have been compliant with this since finding out.

If tenants can't adjust to the terms of your rental agreement and are non-compliant, you can followup with Notices to Comply.

Renter Inc says that it's completely legal because they are FCRA compliant and fact based so there is no reason to worry about a slander lawsuit. 

You can contact the borrower yourself or have your employee do so since you are the lender, but you need to make sure you are compliant with all CFPB regs.