First applicant lied on the application...and was convicted as recently as last October for burglary and theft (with previous warrants listed).  

I still require applicants to fill out a paper application so I can collect SSN and drivers license numbers. 

I use Quicken for book keeping so really, the only benefit I get is the application process.

I filled out applications for both and the broker was lower. 

I would expect about a 6-9 month period from application to approval WITH an expeditor.  

I would be much more comfortable with a fee structure similar to the following:Listing Fee = $50Showing Property Fee = $50 a showingApplication Fee = $20Background/Credit Check = $50Maintenance Issue = $50 an inquiryIf I had the property shown 4 times with 2 applications processed I would owe $340.

Was the requirement to have a co-signer discussed with you during the application process?  

When there are two or more borrowers, but one or more will not occupy the property as his/her principal residence, the maximum mortgage is limited to 75% loan-to-value (LTV).Borrowers should take note of some exceptions to that 75% limit which are based on family-type relationships.Borrowers are eligible for maximum FHA loan financing for non-occupying borrower situations for FHA loan applicants who are related by blood, marriage, or law.

And what adjustments did you make to make that lesson applicable in today's field? 

Most landlords approve the first applicant with the belief that all people in that neighborhood are bad tenants.