Florida: 88 former federal criminals were licensed by regulators as mortgage brokers

madfloridian

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Thu Sep-18-08 09:49 PM
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Florida: 88 former federal criminals were licensed by regulators as mortgage brokers

An "investigation, carried out by the Inspectors General of the State Cabinet Offices, concluded the state's regulatory system was `insufficient to protect the people of the state of Florida.'

That is putting it mildly.

The report released Tuesday to Gov. Charlie Crist and the Cabinet criticized the Office of Financial Regulation, saying the agency broke down in key areas, including screening brokers and shutting down shoddy operations, while the state grappled with the nation's worst home loan fraud crisis.

This is almost unbelievable in its scope and lack of regulation.

A state probe, prompted by a Miami Herald investigation, says the state did not protect people against crooked mortgage brokerages.

MIAMI HERALD FILE Pamela Simmons still gets emotional talking about the loss of her Pompano house to mortgage fraud.

The Herald's series led to the forced resignation of Commissioner Don Saxon, who had overseen the agency since 2003. Saxon said last month he hoped the report would vindicate his leadership of the agency. When asked Tuesday if the audit had done so, Crist responded with an abrupt ``No.''

Saxon, 57, who is to step down in two weeks, was on vacation and didn't return repeated calls for comment.

This is a long investigative article at the Miami Herald. There are videos and slide shows as well.

The newspaper found that more than 10,000 people with criminal histories -- including bank robbers and land swindlers -- were able to peddle home loans across the state this decade. Of those, more than 4,000 cleared OFR background checks despite criminal pasts, with most committing offenses that state law required the agency to screen -- fraud, dishonest dealing and crimes of ``moral turpitude.'' The newspaper found that convicted criminals went on to steal at least $85 million from consumers and lenders.

..The Miami Herald found 88 former federal criminals were licensed by regulators, including former bank robbers.

..."While state auditors found 588 people with serious criminal backgrounds who were granted licenses since 2003, The Herald examined brokers from the entire decade, finding 2,000 with felonies, and another 2,000 guilty of lesser crimes.

The Herald's investigation also found scores of brokers were able to commit crimes while licensed -- including mortgage fraud -- and stay in the business.

Florida is sort of a testing ground for the extremist views of the Bush Republicans. They don't care about right and wrong, they only care about winning. They took great pride in their divisive convention.

"Rudy Giuliani sliced and diced," said McCollum. "Here's a guy that took the other guy apart, and we loved that last night."

He said Arizona Sen. John McCain and Alaska Gov. Sarah Palin were a potent duo, "and I also know the bad guys know that," referring to the Democrats. "This is going to be a knockdown, drag-out fight."

That is our Attorney General speaking of slicing and dicing.

It is the testing ground for the religious right to take public school money and give it to religious schools.

It is the testing ground for the teaching of creationism and a ban on teaching evolution in the schools. They have been rules against but they just keep on.

Even though the state Supreme Court just ruled against them, they are not about to give up. They just keep on fighting and getting uglier.

Ybor City Stogie put it well when he said:

Meanwhile, In Jebbie's Florida Fiefdom... Top Florida investigators found that state regulators failed to alert police agencies to crooked mortgage brokerages, ignored citizen complaints and allowed hundreds of people with criminal histories to peddle loans

The rules are different here with this type of Republican in control.