Each state has it's own laws regarding real property transfers and title companies in each state have their own regulations on closing deals.  

A loan for a property you're going to occupy is subject to a lot of rules and regulation.  

Please don't take offence, but being a RE investor and/or builder is a whole different than building a software company that is heavily regulated. 

They ought to regulate and tax short term rentals at the city level instead of eliminating them altogether.

They wouldn't use a real estate CPA to advise on corporate international tax havens the same as they wouldn't use a business CPA to advise on the intricacies of the passive activity loss rules and the IRS Tangible Property Regulations.

Baltimore is about as tenant friendly as any place could ever be, and its laws and regulations reflect it.

There are a plethora of mortgage servicers who handle all of these things.Taking, processing and administration on mortgage payments is a far more regulated concept than rental payments.  

The returns to you are regulated by the SEC.It's a true passive investor <Grin>. 

When we questioned our attorney, he had never encountered this issue before and he thought perhaps it may be part of some new FNMA regulations?  

I have been searching the internet for any type of code or regulation and have not been successful.