An investigative report by a South Florida newspaper has found that the state of Florida issued mortgage licenses to more than 10,000 applicants with criminal records. In addition, the report found that of the 10,000 with criminal records, some 4,000 managed to pass background checks despite having convictions for fraud, racketeering and extortion; crimes the state's regulators are required to screen for.
Florida's Chief Financial Officer, Alex Sink, has called for the resignation of Don Saxon who served as Florida's chief mortgage regulator during the time-frame of the alleged oversight. Sink is also asking for Governor Charlie Crist to issue an executive order to stop issuing and renewing mortgage applications to convicted felons.
So why does this come to light only now? How is it possisble that so many mortgage licenses were issued to so many unfit applicants? Those of us mortgage bankers who work for banks who have long had to meet much more stringent background checks, drug testing, etc. are left scratching our heads since we have all been lumped in with the bad apples of the industry. Hopefully, a lesson will be learned from this and state and federal regulators will crack down on the mortgage lending industry licensing requirements. The days when all it took was the ability to fog a mirror to get a mortgage license are hopefully a thing of the past. I applaud Alex Sink and hope her actions will help return some sense of dignity and respect to the once-honorable mortgage profession.
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