I'll definitely try other banks if this Fannie Mae regulation is not one that is a hard and fast rule that all lenders have to go by.  

hey again, Ryan- I cannot really discuss this online, as these are private placements and regulated. 

The alternative is that if someone gets hurt working for you in an environment you can control and they cannot, you will be liable in tort.

They enjoy the current legal environment that results in a plethora of HOA court cases and unlimited funding of these cases through HOA bank accounts (and all without any involvement, knowledge, or approval of home owners).

You cannot prove work comp to a state regulator by just not having it, there is a formal process to self-insured.Lastly, to the original poster@Jim Carson , living in Indianapolis, and knowing a lot about insurance, repeat this mantra when thinking about insurance. 

I did more digging and found out that the unit was marketed as a 1 bedroom but according to local regulations a bedroom must have a window of 10% or more as compared to the size of the room. 

Fix/flip money though falls outside of Dodd Frank and other regulations. 

Now, if you take a deed in lieu of foreclosure, you then own the property as you accepted the property as payment, the lien is extinguished and the borrower abandons any claims of excess equities.The reason lenders have sale requirements is to keep a lender from going into the real estate business, there becomes an incentive to foreclose and go into RE sales, you are a regulated lender, not a private investor.  

Regulators will scream if a bank finances a past problem property without a heck of a good reason to do so.Be it a SFD or especially a multi or commercial property, there is a reason the borrower went belly up, that often has issues with trails leading back to the property.

If you're doing mobile homes without the land, then maybe not - check your local regulations on mobile home sales.