Health care organizations require encryption for HIPAA and many businesses are dealing with mandatory disclosure laws when they lose personally identifiable information of their customers, employees, or whomever.

The problem arises in the event of disclosure.

Taking on investors and leveraging their equity without proper disclosure (a.k.a. getting hard money loans) can open you up to liability from your investors.How and when will you report to your investors?

I think most auctioneer's try to do a good job in providing accurate information and disclosures, but auctions are like any other real estate transaction, due diligence is a must!

Some have dropped their license to avoid disclosures and liability ("higher standard") concerns.

No.It's voluntary disclosure by the landlord. 

Or will a full disclosure compilation suffice?

It would be really nice to have the ability to view Disclosures and Expenses when running an analysis against a property.

Information is better and they still allow for running comps in states that are non-disclosure states, unlike Propstream.

Again, just sharing what I would probably do, not lending legal advice or tax advice or veterinarian advice or any other license impacting disclosure disclosure disclosure yada yada yada stuff.