Maybe I'm biased but it feels like he is protecting his own interest by trying to find the buyer himself so he can double dip on the commissions (acting against the code of ethics right?)

As long as you are an ethical housing provider and not a slum lord, there won't be any issues. 

Also - regardless of the ethical dilemma, I'd simply prefer not to get insurance from a low-income subsidy from a practical standpoint.

Money does not have ethics.

A lot of investors would love to help someone just getting started, as long as they know they're not a flake, and bring a work ethic.

I don't know the CA code of ethics for agents, but I hope I helped a little bit. 

My question is how ethical is it to contact the homeowner if they are willing to sell the home?

So, I’m not sure what your reasons were for your original interest in banking locally, but if ethics are any part of it, I would skip Wells.

I got a call from my old agent this morning because the listing agent had called him per her "code of ethics" to inform him that I had written another offer three months later.

These are professionals with additional training and a stricter code of ethics.