NPR All things considered.

[Kevin Mc]

Staggering story on NPR right now re Florida Mortgage fraud.. Audio feed will be available after 7 pm.

http://www.npr.org/templates/story/story.php?storyId=92793930

 

[Hamlet]

Interesting...back ground checks mean nothing.

 

[Mike Kennedy]

Nor does Licensing when it's NOT ENFORCED.

 

[Michael Tipton]

Saxon's press release 07/21

Press Release:

07/21/2008

COMMISSIONER SAXON’S RESPONSE TO MEDIA INVESTIGATION INTO MORTGAGE INDUSTRY REGULATION

​

CONTACT: Holly Hinson
PHONE NUMBER: (850) 410-9709

TALLAHASSEE, FL – I am concerned about the serious issues raised in the recent media investigation of the mortgage broker licensing procedures and practices of the Office of Financial Regulation. First and foremost my concern is for those persons victimized by mortgage fraud. I take the responsibility of consumer protection very seriously.

My office has improved consumer protection through numerous initiatives. In both 2006 and 2007, the Office was successful in obtaining passage of legislation to strengthen mortgage licensing and consumer protection.

In March of this year, the Office implemented a comprehensive mortgage industry licensing and enforcement database. This database, known as the REAL (Regulatory Enforcement and Licensing) System, will allow licensing staff to focus their time on applications requiring substantive review. In addition, REAL will provide a single source of information for licensing and enforcement activities. We are currently exploring linking REAL to the National Mortgage Licensing System.

I recognize the importance of continuous process improvement. Understanding that any program may be improved, the Office currently has a consultant under contract to review and improve the efficiency and effectiveness of our policies and procedures in the mortgage area.

In 2007, the Office of Financial Regulation had over 80,000 licensed mortgage brokers. In recent years, we have received as many as 25,000 new applications in a single year. On average, we refused to approve almost 30 percent of all applicants.

While my staff conducts an extensive background review of each applicant, the law does not permit the Office to deny an applicant for any past arrest, or even any criminal conviction -- only certain types of convictions may be considered. However, we intend to work with the staff of CFO Sink over the next few days to explore administrative rulemaking initiatives that could significantly strengthen our approach when considering the application of any person who has been convicted of a felony involving fraud, dishonest dealing, or any act of moral turpitude.

My office is conducting an in-depth review of the information contained in the report to address all the issues raised. I am committed to investigate the concerns and fully address all issues identified.

About the Florida Office of Financial Regulation
The Office of Financial Regulation (Office) is dedicated to safeguarding the private financial interests of the public by licensing, chartering, examining and regulating depository and non-depository financial institutions and financial service companies in the State of Florida. The Office protects consumers from financial fraud, while preserving the integrity of Florida’s markets and financial service industries. Please visit our website at www.flofr.com or call us toll free at 800-848-3792 or directly at 850-410-9898.

 

[Alison Swain]

Ask some members of FREAB sometime about the Dept. of Finance's willingness to cooperate with appraisers' concerns.