This is a scam to profit LENDER's who want higher rates from 'investment property loans'--- the ONLY type of loans one can apparently take out on Duplexes in Texas, and only on NON owner-occupied multifamily.  

Your post was the first I've seen that actually named a specific type of insurance.These scams tend to be from unknown lenders found on anonymous lender website lists.

What about all the real estate scams over the years land deals Florida  swamp land etc.

Servicing is a scam IMO.  

I am not well versed in contracting but find myself needing them for upcoming project.How do you spot scam contractors?

Combine that with another growing trend in our country towards getting back to the basics of the Constitution, and you have a rather large anti-government sentiment in the grass-roots.Is it "unethical" to break a law, just because it's a law?

Brandon, this has been discussed at length on BP: Scam artists use seller financing (SF) to get a higher price, they love your thinking, those who can't borrow are attracted to SF as a solution and predators take advantage of the situation.

The way the scam works is that they have people apply to join the Rhino Group.

I get angry with anti-science statements.

I have been in eCommerce and doing SEO since 1999 and I can tell you that the search engines have solve almost anyway people try to scam/spam them.