Joyce Potts
Elite Member
- Joined
- Feb 6, 2005
- Professional Status
- Certified Residential Appraiser
- State
- Florida
Why am I not surprised. Not enough resources? Sounds like they have the same problem as the state appraisal boards.
http://www.orlandosentinel.com/news/local/state/orl-mortgage2508jul25,0,26681.story
State official admits felons worked in mortgage industry
The Associated Press July 25, 2008 MIAMI - The head of a state agency that allowed thousands of criminals to sell home loans in Florida has acknowledged that his office did not follow a screening law, but blamed legislators for failing to provide money to enforce it.
That's one of the explanations in a 40-page response to a Miami Herald investigation, which found that more than 10,000 people with criminal records were permitted to work in Florida's mortgage industry between 2000 and 2007.
People who entered the business with criminal records committed nearly $85 million in mortgage fraud, the newspaper reported Sunday.
Office of Financial Regulation Commissioner Don Saxon issued the explanations late Tuesday.
"I am committed to investigate the concerns and fully address all issues identified," Saxon wrote.
Saxon also recommended toughening state law to keep felons out of the industry. He previously told the newspaper that he hadn't tried to change the law before because he didn't think it would pass.
Saxon conceded his agency failed to abide by a 2006 law requiring the screening of mortgage broker license applicants for federal crimes until two years later. The Legislature had provided no money for the screening, he wrote.
State Sen. Gwen Margolis, D-Sunny Isles, said that shouldn't have been a problem because the Joint Legislative Budget Commission, of which she is a member, meets throughout the year to make budget changes.
Dozens of brokers also kept their licenses after being convicted of financial crimes including mortgage fraud, the newspaper reported. In his response, Saxon wrote that regulators had no way of knowing about brokers convicted after getting their license.
Saxon's response came two days after Chief Financial Office Alex Sink called for his resignation based on the newspaper's findings. Sink also is seeking an executive order to stop issuing and renewing broker licenses to convicted felons, saying regulators "were asleep at the switch."
"In cases where someone has already been convicted of financial fraud . . . there are no second chances," Sink said.
Sink plans to bring up the issue when Gov. Charlie Crist and the Florida Cabinet next meet Tuesday. The four-member panel, which also includes Attorney General Bill McCollum and Agriculture Commissioner Charles Bronson, oversees Saxon's office.
It would take three votes to oust him. McCollum said he wants action but isn't yet ready for Saxon's resignation, noting his response disputes some of the allegations and inferences in the newspaper's article.
"We need to evaluate this, weigh it, look at it, make corrections," McCollum said.
http://www.orlandosentinel.com/news/local/state/orl-mortgage2508jul25,0,26681.story
State official admits felons worked in mortgage industry
The Associated Press July 25, 2008 MIAMI - The head of a state agency that allowed thousands of criminals to sell home loans in Florida has acknowledged that his office did not follow a screening law, but blamed legislators for failing to provide money to enforce it.
That's one of the explanations in a 40-page response to a Miami Herald investigation, which found that more than 10,000 people with criminal records were permitted to work in Florida's mortgage industry between 2000 and 2007.
People who entered the business with criminal records committed nearly $85 million in mortgage fraud, the newspaper reported Sunday.
Office of Financial Regulation Commissioner Don Saxon issued the explanations late Tuesday.
"I am committed to investigate the concerns and fully address all issues identified," Saxon wrote.
Saxon also recommended toughening state law to keep felons out of the industry. He previously told the newspaper that he hadn't tried to change the law before because he didn't think it would pass.
Saxon conceded his agency failed to abide by a 2006 law requiring the screening of mortgage broker license applicants for federal crimes until two years later. The Legislature had provided no money for the screening, he wrote.
State Sen. Gwen Margolis, D-Sunny Isles, said that shouldn't have been a problem because the Joint Legislative Budget Commission, of which she is a member, meets throughout the year to make budget changes.
Dozens of brokers also kept their licenses after being convicted of financial crimes including mortgage fraud, the newspaper reported. In his response, Saxon wrote that regulators had no way of knowing about brokers convicted after getting their license.
Saxon's response came two days after Chief Financial Office Alex Sink called for his resignation based on the newspaper's findings. Sink also is seeking an executive order to stop issuing and renewing broker licenses to convicted felons, saying regulators "were asleep at the switch."
"In cases where someone has already been convicted of financial fraud . . . there are no second chances," Sink said.
Sink plans to bring up the issue when Gov. Charlie Crist and the Florida Cabinet next meet Tuesday. The four-member panel, which also includes Attorney General Bill McCollum and Agriculture Commissioner Charles Bronson, oversees Saxon's office.
It would take three votes to oust him. McCollum said he wants action but isn't yet ready for Saxon's resignation, noting his response disputes some of the allegations and inferences in the newspaper's article.
"We need to evaluate this, weigh it, look at it, make corrections," McCollum said.
