and render an opinion as to its value and condition, and to determine whether there is compliance with those standards and conditions prescribed by HUD regulations.
8. When an appraiser is confronted with conditions as to which he lacks expertise, he requests that the broker obtain certifications from a contractor that certain structural components comply with specifications or that certain work has been done according to specifications.
9. In those instances where certifications are requested, the FHA will not insure the mortgages unless such certifications are filed with the agency.
10. Hibbs caused certifications to be issued on the condition of the roof by Raymond Darrah on November 28, 1969, on the plumbing and heating systems by Joseph Matz on May 14, 1970, and on the electrical systems by Gerald Smith on April 30, 1970. The FHA relied upon the certifications in issuing its commitment to insure the mortgages on the above numbered properties.
11. The mortgagee on the six properties was the United Broker Mortgage Company, with its principal place of business in Philadelphia, Pennsylvania.
12. The convictions established that Hibbs, knowing that the certifications were false, caused them to be made or used for the purpose of inducing the FHA to issue mortgage insurance on the above properties.
13. The government would not have undertaken to insure the mortgages against default had it not been for the submission of the false certifications.
14. The mortgagors on the six properties became delinquent in their payments and defaulted on their mortgage obligations. Thereafter mortgagee presented claims to the FHA for payment on the mortgage insurance commitment.
15. The United States expended a total of $59,904.21 in honoring its insurance commitment on the six defaulted properties. The figures are broken down as follows:
2909 North Marshall Acquisition costs * $8,096.85
Maintenance costs 656.93
Foreclosure costs ** 1,445.47
2911 North Marshall Acquisition costs $8,490.41
Maintenance costs 589.18
Negative escrow 48.43
Foreclosure costs 630.69
2915 North Marshall Acquisition costs $9,142.74
Maintenance costs 572.21
Foreclosure costs 212.43
Positive escrow 18.00
2917 North Marshall Acquisition costs $8,643.68
Maintenance costs 785.19
2923 North Marshall Acquisition costs $9,744.31
Maintenance costs 702.69
2933 North Marshall Acquisition costs $9,298.02
Maintenance costs 862.98
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