Wachovia Mortgage Corporation has agreed to indemnify the Department of Housing and Urban Development for failing to exercise due diligence when underwriting FHA loans that had indicators of false credit and employment documents. A recent audit by the Office of the Inspector General for HUD found that a Wachovia branch in Arizona should have identified and resolved significant discrepancies in 27 loan files totaling nearly $2.9 million, which included falsified credit reports, fabricated or…