FOR IMMEDIATE RELEASE                                         CIV
FRIDAY, JANUARY 18, 1996                           (202) 616-2765
                                               TDD (202) 514-1888

                                 
          U.S. COLLECTS $499,000 IN SETTLING HUD DISPUTE


     WASHINGTON, D.C. -- Stewart Title Guaranty Company of
Houston, Texas, will pay the United States $499,000 to settle
allegations its Oklahoma affiliate submitted false statements to
the Department of Housing and Urban Development to obtain
federally insured loans, the Department of Justice announced
today.  
     Assistant Attorney General Frank Hunger, in charge of the
Civil Division, said the settlement resolves a suit filed by the
government in U.S. District Court in Oklahoma City, Oklahoma,
against Stewart's affiliate, S & D Titles Inc., d/b/a Stewart
Escrow & Title Services Southwest, and Gary Shores, former
president of Stewart Escrow & Title. 
     The suit alleged that Stewart Escrow & Title submitted false
information to HUD to help an Oklahoma City real estate developer
obtain HUD-insured home mortgage loans to finance 19 properties
in 1985.  On May 15, 1989, the developer, Cecil Johnson, was
convicted on federal criminal charges that he made false
statements to HUD in the loan applications.
     Hunger said, "Participants in government-insured mortgage
lending programs should understand that our enforcement efforts
are not limited to lenders, but extend to anyone who causes false
or fraudulent documents to be submitted to the government."
     In its suit, the government alleged that the developer
recruited loan applicants--so-called "straw buyers"--to apply for
HUD-insured loans on distressed single-family homes in Oklahoma
City.  The government contended that Stewart Escrow & Title and
Gary Shores falsely represented to HUD that the straw buyers paid
into escrow the down payments required by HUD to qualify for HUD-
insured loans on the properties.
     HUD was forced to pay the claims under the mortgages'
insurance policies and take title to the properties when the
developer defaulted on the loans.  HUD previously settled
allegations that the lender, Liberty Mortgage Corporation of
Oklahoma City, improperly processed the loans.
     After selling the properties and settling with the lender,
HUD incurred a net loss of $355,000.
     Under today's settlement, the United States will dismiss its
case against Stewart Title Guaranty Company, Stewart Escrow &
Title and Gary Shores.
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96-008