Florida Regulators Gave Ex-Cons OK for Peddling Mortgages

Posted by Tina

Jack, Here’s an example of low standards and ethics in governement officials meeting up with criminals to create costly havoc in the mortgage industry and tough times for consumers:

Ex-convicts active in mortgage fraud, by Jack Dolan, Rob Barry and Matthew Haffman Miami Herald

During Florida’s housing boom, state regulators allowed thousands of mortgage professionals with criminal records into the industry — costing consumers millions. *** State regulators allowed thousands of ex-convicts to enter a profession that gave them access to the most sensitive and personal financial information: credit cards, bank accounts and Social Security numbers. *** Those criminals went on to commit nearly $85 million in mortgage fraud, the newspaper found. They stole their customers’ identities. They stole their money. They even stole their homes. *** From 2000 to 2007, regulators allowed at least 10,529 people with criminal records to work in the mortgage profession. Of those, 4,065 cleared background checks after committing crimes that state law specifically requires regulators to screen, including fraud, bank robbery, racketeering and extortion. *** During the peak of the housing boom, the Office of Financial Regulation ignored a state law enacted in 2006 that compelled it to perform nationwide criminal background checks on applicants. That failure allowed people convicted in other states — and in federal court — to peddle loans in Florida without any scrutiny.

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