I called hgim to speak about it verbally and when I did he became aggressive with me on the phone and denied any wrong doing.

@Robert Kim In reference to the findings by the Sec and Exchange commission, it was not the owners of PFP that was charged for the wrong doing, if anyone is going to make a statement against someone they should take the time to read the filing in full.  

From my understanding (feel free to correct me if I'm wrong) does this conversely mean that if one's services are free to homeowners and one does not charge them out of pocket for services rendered, one doesn't need a bond or application?

Agreed, that the legal process of hiring an attorney and firing out a demand letter would be  a slow process, but surely the authorities should be able to verify if there was or wasn't wrong doing in this situation quicker than a couple years.  

And lastly I'm wondering about why they have not filled it if it's not a timing issue it could be priced wrong?

They take your money every month and when you finally put in a claim they are slow to act or try and say it was your wrong doing. 

While it might be a little "out of the box" by some conventional wisdom standards, I would defy any jury in the world to convict you of wrong doing :) Once you sell the advertised right, the buyer does have the option to buy the property, but also has the option not to (if they don't mind giving up the assignment fee, that is).

Again if you can prove me wrong do it.  

However, just because he has a personal interest, it doesn't mean there is a conflict or any wrongdoing.

I would cheer the IRS finding wrongdoing.