And the ones that do exist need to be air tight with their disclosures and collateralization.

One of my top competitors here in the East Bay is actually a branch of a mortgage bank with horrible reviews all over the place, but they did the licensing stuff to be able to brand themselves as a different company (rather than being a "branch"), and have phenomenal reviews, you'd only know they are with that SLMB (s.... little mortgage bank) if you read the small print on the website and on your disclosures REALLY carefully.

I'll give you a super simplified example: if you buy a property and say you're NOT living in there, and then you do move into it; now the lender could be in violation of a litany of laws, including consumer protection laws, just based on what disclosures they did or didn't send out to you during the loan process, the rate, the fees, the terms, etc. 

Selling the property could be a major issue, as you will need to disclose on the sales disclosure you did the work without permits2.

When you sell the house in WA state in the required disclosures it asks if any remodel work was done and if all proper permits were acquired. 

Just look at when the roof and HVAC were replaced in the disclosures and if you don't like it negotiate during the due diligence period.

Your best defense is to make any repairs that you can, get another inspection done by a good and reputable inspector, and provide both reports to all prospective buyers along with a letter/statement explaining what was taken care of in between the reports.Full disclosure is always the best course in Real Estate.

They can also tell you who has a easier and less problematic draw process and assist you with creating your scope of work.Of course in full disclosure I am tooting my own horn.

I suggest full disclosure to the listing agent on who you are, as they will want to have your deal in hand and make sure your offer gets top priority.

However, the investigator discovered my Brokerage Disclosure form was missing and they nailed me for that.