The OIG also investigated several cases of fraud, including a $165 million mortgage fraud conspiracy, a multimillion-dollar COVID relief fraud scheme, and a civil settlement related to misconduct in residential mortgage-backed securities. These investigations resulted in numerous convictions, prison sentences, and financial penalties.
“One successful action 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 deceive lenders into issuing multifamily and commercial mortgage loans by providing them with fictitious purchase and sale contracts with inflated purchase prices. The defendant also pleaded guilty to conspiracy to commit wire fraud affecting a financial institution.”
In addition to its investigative work, the OIG conducted audits and evaluations of FHFA’s programs and operations. These reviews identified areas where FHFA could improve its oversight of regulated entities, such as documenting reviews of desktop appraisal reports and developing policies and procedures for certain supervisory activities.
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The OIG also highlighted its efforts to combat fraud through public awareness campaigns and collaboration with other law enforcement agencies. The OIG’s hotline received over 1,400 contacts during the reporting period, including tips, complaints, and referrals related to potential fraud.
