The issue we're having is that the mortgage specialist is that the underwriters won't approve of a mortgage because they won't believe that my friend is going to leave his wife to come owner-occupy a property with me due to the possibility of "occupancy fraud".

I'll remember your point about being objective when it comes to statements from tenants.

Welcome to the site Bernie Rehab specialists who are not working are really hard to find I have found.Many won't even return calls and if they do half won't show up.I think you could find a way to answer a need that is not being met right now.

Asked owner for receipts for all repairs done over past year and also got quotes for any of the inspection objections that the owner did not agree to do (since these would come out of my pocket). 

If he got out five years ago and could show clean credit, criminal, and rental history, then I would rent to him as long as he met all my criteria.The key is to establish a written policy that is based on objective criteria and then apply it equally to all applications.

Hello my name is Brandon, I'm a loan specialist in the Boca Raton area, working for a company that offers loans in 28 states.  

They all have their own sets of guidelines and you have to shop around until you find what best fits your needs/objectives.

They did not object to the cat.

Before you or they object to the problems with this plan, I already know.  

What are your short, medium, and long term objectives?