Fraud, risk and regulation: key findings from FHFA OIG report

The OIG also investigated several fraud cases, including a $165 million mortgage fraud conspiracy, a multimillion-dollar pandemic fraud scheme, and a civil settlement related to residential mortgage-backed securities misconduct. These investigations resulted in numerous convictions, prison sentences and financial penalties.

“One successful action during this period involved a real estate investor who pleaded guilty to a $165 million mortgage fraud conspiracy in the District of New Jersey,” Inspector General Brian Tomney wrote in the report. “During this multi-year scheme, the defendant conspired with others to defraud multifamily and commercial mortgage lenders by presenting them with fictitious purchase and sale agreements with inflated purchase prices. The defendant also pleaded guilty to conspiracy to commit wire fraud on behalf of a financial institution.

In addition to its investigative work, OIG conducted audits and evaluations of FHFA’s programs and operations. These reviews identified areas in which FHFA could improve its oversight of regulated entities, such as documenting reviews of office assessment reports and developing policies and procedures for certain oversight activities.

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The OIG also highlighted its efforts to combat fraud through public awareness campaigns and cooperation with other law enforcement agencies. During the reporting period, the OIG hotline received more than 1,400 contacts, including tips, complaints and reports of potential fraud.