FEDERAL

More documents

Recommendations

Info

fraud and wire fraud involving a financial institution in the same court. From approximately 2002 until 2007, Totten was a loan officer who acted as an unlicensed mortgage broker (operating under broker licenses held by others). During this time, Totten owned or operated Integrated Home Loans, Integrated Lending, Money World, and other entities and generated business by advertising on television and other media. In 2006, Totten allegedly obtained $2.2 million in mortgage loans on behalf of a single straw buyer by allegedly using false information on the straw buyer’s loan applications and then collected kickbacks and commissions on the sales. Lockard, a loan processor, worked for Totten from January 2006 through June 2007, during which time she processed these and other fraudulent loans. Lockard created and processed fraudulent loan applications and fraudulent supporting documents, such as false Certified Public Accountant letters, false bank statements, and false verification of deposit forms. She submitted them to mortgage lenders including FHLBank members. Many of the loans subsequently defaulted, causing the mortgage lenders and secondary purchasers, including the enterprises, to suffer significant losses as a result of the conspiracy. This was a joint investigation with the FBI, IRS-CI, and U.S. Attorney’s Office for the Southern District of California. Loan Officer Sentenced, Annandale, Virginia On July 30, 2013, in the U.S. District Court for the Eastern District of Virginia, Rina Delgado was sentenced to 12 months of incarceration and 3 years of supervised release. She was also ordered to pay $1,160,611 in restitution. She previously pled guilty to conspiracy to commit wire fraud. in Annandale, Virginia. In this capacity, she placed false information in loan applications and used false documents, such as W-2 forms, to qualify otherwise unqualified applicants for loans. The enterprises suffered losses exceeding $800,000 as a result of Delgado’s conduct. This was a joint investigation with the FBI and was prosecuted with assistance from an OIG investigative counsel. Servicer Allegedly Diverted Over $18 Million Owed to the Enterprises, Ft. Lauderdale, Florida On July 11, 2013, in the U.S. District Court for the Southern District of Florida, a criminal information was filed against Patrick Mansell, alleging conspiracy to commit wire fraud. Mansell pled guilty on August 5, 2013. Starting in April 2007, Mansell used his position as vice president, secretary, and director of Coastal States Mortgage Corporation to defraud the enterprises. Through February 2012, Coastal States withheld mortgage loan payoffs due to the enterprises for extended periods. Coastal States would use these funds for its own business purposes and to make monthly mortgage payments on paid-off loans, misrepresenting them as performing loans. Payoffs fraudulently retained by Coastal States were also used to remit funds due to the enterprises for previously withheld payoffs. Daily and monthly servicing reports were supplied to the enterprises containing false information and altered loan-identifying numbers, which enabled the scheme to go undetected. The enterprises lost more than $18 million as a result. The Florida Office of Financial Regulation provided assistance to OIG during the initial stages of the investigation. From September 2006 until August 2007, Delgado worked as a loan officer with SunTrust Mortgage Semiannual Report to the Congress • April 1, 2013–September 30, 2013 23
Inflated Sales Prices and Multiple Sales of Single Properties, Dallas, Texas On July 10, 2013, Herbert Williams was indicted for conspiracy to commit bank fraud and aggravated identity theft in the U.S. District Court for the Eastern District of Texas. Williams and a conspirator allegedly inflated the sales prices of a home that was sold in two fraudulent transactions. Williams was also involved in similar schemes with five other properties. The combined schemes caused a loss of $1.2 million to the involved financial institutions, including a loss of $900,000 to the enterprises, which bought mortgages on the properties. This was a joint investigation with the Secret Service. Mortgage Fraud Conspiracy Charges, Oxnard, California On June 26, 2013, Jose Garcia, Lucy Garcia, Jose Fernando Murguia, Sesilia Garcia, Lili Ayala Hernandez, Gregg Quinn, Lidubina Perez, and Cesar Rodriquez Azamar were indicted in the U.S. District Court for the Central District of California for conspiracy to commit wire and bank fraud. On September 27, 2013, Quinn pled guilty to conspiracy to commit bank and wire fraud. According to the indictment, the conspirators allegedly generated dozens of mortgage loans for unqualified borrowers. For these unqualified borrowers, the conspirators allegedly prepared mortgage applications that contained false information about borrowers’ income, employment, and assets. The defendants in these cases generated huge commissions and fees through the mortgage application process—typically at least $10,000 per mortgage. This was a joint investigation with the FBI, HUD- OIG, and the Secret Service. Former Broker Sentenced, Morristown, New Jersey Mortgage broker sentenced to five years incarceration. On June 21, 2013, Joshua Van Orden was sentenced in the Superior Court of New Jersey, County of Morris, to five years of incarceration. Between September 2009 and February 2010, Van Orden, while a mortgage broker at Superior Mortgage Corporation, knew that loan applications for three borrowers that he presented to his employer contained false information and omissions of material facts. Additionally, with respect to one of the three transactions, Van Orden facilitated a short sale from Fannie Mae to a straw buyer that resulted in a loss to Fannie Mae of approximately $150,000. A judgment was ordered for $107,000 in favor of Fannie Mae. This was a joint investigation with the New Jersey Attorney General and the New Jersey Division of Criminal Justice. Indictments in a $3.5 Million Mortgage Fraud Scheme, Baltimore, Maryland On June 10, 2013, Edgar Tibakweitira, Flavia Makundi, Annika Boas, Makorya Wambura, Carmen Johnson, and Cane Mwihava were indicted in the U.S. District Court for the District of Maryland for wire fraud, conspiracy to commit wire fraud, aggravated identity theft, and aiding and abetting. The defendants allegedly diverted funds from $3.5 million in fraudulently obtained loans, which resulted in losses of over $1 million to lenders, FHA, and the enterprises. 24 Federal Housing Finance Agency Office of Inspector General
Page 2 and 3: Federal Housing Finance Agency Offi
Page 4 and 5: Section 3: Lessons for Housing Fina
Page 6 and 7: OIG’s Accomplishments from 2010 t
Page 8 and 9: A Message from the Acting Inspector
Page 10 and 11: insures mortgages against credit lo
Page 12 and 13: Semiannual Report to the Congress
Page 14 and 15: in a number of criminal and civil i
Page 16 and 17: Figure 3. Scoring of Investor Quali
Page 18 and 19: and provide for financial consequen
Page 20 and 21: Figure 5. Agreements Between Fannie
Page 22 and 23: 2010 to 2012, but the attrition rat
Page 24 and 25: Figure 8. Estimated Enterprise Aggr
Page 26 and 27: operations that pose the greatest r
Page 28 and 29: poor financial condition, Appalachi
Page 32 and 33: This was a joint investigation with
Page 34 and 35: y falsified, forged, and altered do
Page 36 and 37: Short Sale Schemes A short sale occ
Page 38 and 39: This was a joint investigation with
Page 40 and 41: at Appalachian concealed past due l
Page 42 and 43: indemnification payments that OIG p
Page 44 and 45: the SEC, and others. In July 2013,
Page 46 and 47: Figure 10. Overview of the Enterpri
Page 48 and 49: Figure 12. Enterprises’ Annual Ne
Page 50 and 51: Figure 14. Home Price Index 2011 Th
Page 52 and 53: educe the principal balance of Trea
Page 54 and 55: Figure 17. FHLBanks’ Net Income f
Page 56 and 57: multifamily housing lending busines
Page 58 and 59: The bill would replace the enterpri
Page 60 and 61: mortgage credit. For its part, the
Page 62 and 63: Figure 20. Reform Models and Reform
Page 64 and 65: Multifamily We have also found indi
Page 66 and 67: Based on recent history, a reformed
Page 68 and 69: Figure 26. The Mortgage Servicing P
Page 70 and 71: Even though the FHFA senior examine
Page 72 and 73: assistance to homeowners and to use
Page 74 and 75: positive NPV, then the servicer is
Page 76 and 77: Siloed Practices: Harmonizing Busin
Page 78 and 79: Semiannual Report to the Congress
Page 80 and 81:
overseen by FHFA. As conservator, F
Page 82 and 83:
Interest Rate Swap: An interest rat
Page 84 and 85:
References Federal Deposit Insuranc
Page 86 and 87:
Department of the Treasury Financia
Page 88 and 89:
Acronyms and Abbreviations Agency A
Page 90 and 91:
Semiannual Report to the Congress
Page 92 and 93:
Figure 29. Summary of OIG Recommend
Page 94 and 95:
No. Recommendation Report Status AU
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104 and 105:
No. Recommendation Report Status EV
Page 106 and 107:
Page 108 and 109:
Page 110 and 111:
Page 112 and 113:
Page 114 and 115:
Audit and Evaluation Reports with R
Page 116 and 117:
Appendix D: OIG Reports See www.fhf
Page 118 and 119:
Appendix F: Description of OIG Offi
Page 120 and 121:
Strategic Goal 2—Operating with I
Page 122 and 123:
Figure 17. Federal Home Loan Banks
Page 124 and 125:
Page 126 and 127:
15 Federal Housing Finance Agency,
Page 128 and 129:
33 Fannie Mae, “Multifamily Busin
Page 130 and 131:
Federal Home Loan Banks Office of F
Page 132 and 133:
to FHFA Scorecard Directive, at 48,
Page 134 and 135:
it is preferable to limit our discu
Page 136 and 137:
Position in the Housing Finance Sys
Page 138 and 139:
144 Fannie Mae, “Comparison of Mu
Page 140 and 141:
157 Id., “Mortgage Servicing,”
Page 142 and 143:
184 Federal Housing Finance Agency,
Page 144 and 145:
Transparency and Certainty for Lend
show all

FEDERAL

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?