BORROWERS BETRAYED
Bad mortgage brokers ran wild, Florida admits
In a stinging critique of the state's oversight of the mortgage industry, 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 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.The 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.''




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