Weekly Real Estate News
Summary
Federal prosecutors charged two Houston-area residents in an alleged mortgage document-falsification scheme. An 11-count indictment describes false employment and income records. HUD investigators estimate $5.89 million in potential FHA insurance exposure, not established losses. Charges remain allegations.
Two Houston-area residents face federal charges over an alleged mortgage fraud scheme involving falsified financial records submitted to lenders, according to an indictment publicized by the Justice Department on October 19.
Federal prosecutors identified the defendants as Tammi Hunnicutt, 64, and Taylor Dickson, 33. An 11-count indictment alleges they helped borrowers obtain Federal Housing Administration-insured and conventional mortgage loans by submitting documents that misrepresented employment and income.
Alleged use of false pay records and bank statements
According to prosecutors, the alleged scheme ran from approximately October 2019 through September 2023. The indictment describes falsified pay stubs, W-2 forms and bank statements used to support mortgage applications and make borrowers appear qualified for loans they might not otherwise have obtained.
The Department of Housing and Urban Development’s Office of Inspector General estimated that the alleged activity exposed the FHA insurance program to approximately $5,890,112.30 in potential losses. That figure is an estimate of exposure, not a finding that the government actually lost that amount.
Earlier court appearances, October 19 announcement
Hunnicutt appeared before U.S. Magistrate Judge Dena Palermo on October 2. Dickson appeared before U.S. Magistrate Judge Peter Bray on October 15. DOJ announced the now-unsealed indictment October 19; those earlier appearances should not be confused with the date of the public announcement.
Prosecutors said the defendants could face up to 20 years in prison and a maximum $250,000 fine for conspiracy to commit wire fraud or wire fraud, and up to 30 years and a possible $1 million fine for making false statements to a mortgage lending business, if convicted. Maximum statutory penalties do not predict any eventual sentence.
The FBI, Federal Housing Finance Agency Office of Inspector General and HUD Office of Inspector General investigated the case.
Underwriting implications
The allegations highlight risks in mortgage income and employment verification when supporting documents are fabricated or altered. The charges have not been proven, and the defendants are presumed innocent unless convicted in court.
Source: U.S. Attorney’s Office, Southern District of Texas, October 19, 2026.
