Miami Herald Logo

State official calls for resignation of mortgage regulator | Miami Herald

×
  • E-edition
  • Home
    • Site Information
    • Contact Us
    • About Us
    • Herald Store
    • RSS Feeds
    • Special Sections
    • Advertise
    • Advertise with Us
    • Media Kit
    • Mobile
    • Mobile Apps & eReaders
    • Newsletters
    • Social
    • Facebook
    • Twitter
    • Google+
    • Instagram
    • YouTube

    • Sections
    • News
    • South Florida
    • Miami-Dade
    • Broward
    • Florida Keys
    • Florida
    • Politics
    • Weird News
    • Weather
    • National & World
    • Colombia
    • National
    • World
    • Americas
    • Cuba
    • Guantánamo
    • Haiti
    • Venezuela
    • Local Issues
    • Crime
    • Education
    • Environment
    • Health Care
    • In Depth
    • Issues & Ideas
    • Traffic
    • Sections
    • Sports
    • Blogs & Columnists
    • Pro & College
    • Miami Dolphins
    • Miami Heat
    • Miami Marlins
    • Florida Panthers
    • College Sports
    • University of Miami
    • Florida International
    • University of Florida
    • Florida State University
    • More Sports
    • High School Sports
    • Auto Racing
    • Fighting
    • Golf
    • Horse Racing
    • Outdoors
    • Soccer
    • Tennis
    • Youth Sports
    • Other Sports
    • Politics
    • Elections
    • The Florida Influencer Series
    • Sections
    • Business
    • Business Monday
    • Banking
    • International Business
    • National Business
    • Personal Finance
    • Real Estate News
    • Small Business
    • Technology
    • Tourism & Cruises
    • Workplace
    • Business Plan Challenge
    • Blogs & Columnists
    • Cindy Krischer Goodman
    • The Starting Gate
    • Work/Life Balancing Act
    • Movers
    • Sections
    • Living
    • Advice
    • Fashion
    • Food & Drink
    • Health & Fitness
    • Home & Garden
    • Pets
    • Recipes
    • Travel
    • Wine
    • Blogs & Columnists
    • Dave Barry
    • Ana Veciana-Suarez
    • Flashback Miami
    • More Living
    • LGBTQ South Florida
    • Palette Magazine
    • Indulge Magazine
    • South Florida Album
    • Broward Album
    • Sections
    • Entertainment
    • Books
    • Comics
    • Games & Puzzles
    • Horoscopes
    • Movies
    • Music & Nightlife
    • People
    • Performing Arts
    • Restaurants
    • TV
    • Visual Arts
    • Blogs & Columnists
    • Jose Lambiet
    • Lesley Abravanel
    • More Entertainment
    • Events Calendar
    • Miami.com
    • Contests & Promotions
    • Sections
    • All Opinion
    • Editorials
    • Op-Ed
    • Editorial Cartoons
    • Jim Morin
    • Letters to the Editor
    • From Our Inbox
    • Speak Up
    • Submit a Letter
    • Meet the Editorial Board
    • Influencers Opinion
    • Blogs & Columnists
    • Blog Directory
    • Columnist Directory
    • Andres Oppenheimer
    • Carl Hiaasen
    • Leonard Pitts Jr.
    • Fabiola Santiago
    • Obituaries
    • Obituaries in the News
    • Place an Obituary

    • Place an ad
    • All Classifieds
    • Announcements
    • Apartments
    • Auctions/Sales
    • Automotive
    • Commercial Real Estate
    • Employment
    • Garage Sales
    • Legals
    • Merchandise
    • Obituaries
    • Pets
    • Public Notices
    • Real Estate
    • Services
  • Public Notices
  • Cars
  • Jobs
  • Moonlighting
  • Real Estate
  • Mobile & Apps

  • el Nuevo Herald
  • Miami.com
  • Indulge

Latest News

State official calls for resignation of mortgage regulator

BY JACK DOLAN AND MATTHEW HAGGMAN

    ORDER REPRINT →

July 21, 2008 03:01 AM

Florida's chief financial officer called for the state's top mortgage regulator, Don Saxon, to resign after a Miami Herald report that his agency issued licenses to thousands of people with criminal histories -- many of whom went on to steal millions from borrowers and banks.

Florida CFO Alex Sink, a member of the state Cabinet, also called for an executive order to stop the Office of Financial Regulation from issuing or renewing mortgage-broker licenses to felons. And she demanded an immediate investigation of the agency to find out "why the people of Florida were not better protected."

A Miami Herald investigation published Sunday showed that more than 10,000 people with criminal records were permitted to work in Florida's mortgage industry during the housing boom between 2000 and 2007. Of those, 4,065 cleared background checks despite having committed crimes that state law requires regulators to screen, including bank robbery, racketeering and extortion.

"I am outraged by the facts presented in today's Miami Herald article on mortgage broker licensing, " Sink said in a statement Sunday afternoon. She added: "Floridians depend on the state to protect them from criminals, and it is inexcusable that state regulators were asleep at the switch."

Sign Up and Save

Get six months of free digital access to the Miami Herald

SUBSCRIBE WITH GOOGLE

#ReadLocal

Sink sits on the Financial Services Commission, which oversees the OFR.

OFR Commissioner Saxon could not be reached late Sunday to comment. He has led the state agency since its inception in 2003.

The OFR regulates Florida's mortgage industry. Its duties include licensing brokers, conducting financial examinations and investigating consumer complaints.

Last week, Saxon defended his agency in an interview with The Miami Herald, saying the law that requires criminal background checks is "discretionary, " allowing regulators to make decisions on a case-by-case basis.

But Saxon said he couldn't explain why his staff issued licenses to convicted bank robbers and racketeers. "I do not have an answer for that, " he said.

The Miami Herald found that people with criminal records who entered the industry committed nearly $85 million in mortgage fraud. "Certainly we are not proud of the fact these people have gone on to do bad things, " Saxon said.

The newspaper's eight-month investigation also found that regulators allowed at least 20 mortgage brokers to keep their licenses after committing mortgage fraud; routinely ignored complaints, allowing rogue brokers to continue operating; broke state law requiring them to conduct nationwide criminal background checks of applicants; and revoked fewer mortgage licenses in the past five years despite a spike in fraud cases.

Ritch Workman, president of the Florida Association of Mortgage Brokers, said he supports banning felons from the industry. "If these unfortunate circumstances lead to a purge of the bad actors, we welcome that, " Workman said. He expressed admiration for Saxon, adding: "I don't applaud his termination. But that's politics, and I'll stay out of that."

  Comments  

Videos

Armed with a bat, robber demands cash at Fort Lauderdale Metro PCS

Miami Marlins owner Bruce Sherman: ‘We want to win’

View More Video

Trending Stories

Man arrested after climbing crane near FIU to ask Trump for mercy for Cuban exile bomber

February 18, 2019 08:44 AM

One dead in shooting near South Beach’s Ocean Drive

February 17, 2019 06:47 AM

A Florida 6th-grader called the Pledge of Allegiance ‘racist.’ Then he got arrested.

February 18, 2019 08:59 AM

Wade on relationship with Riley: ‘We’ve had way more amazing moments than we’ve had not’

February 17, 2019 02:13 PM

Did the rock star unzip it on stage in Miami? Fifty years later, let’s take a look

February 17, 2019 09:41 AM

Read Next

Marlins open spring in full rebuild mode, but here are 6 reasons fans should feel good

Greg Cote

Marlins open spring in full rebuild mode, but here are 6 reasons fans should feel good

By Greg Cote

    ORDER REPRINT →

February 18, 2019 04:57 PM

Anger over the most recent Marlins fire sale is so last year. As the full squad opened 2019 spring training on Monday, we accentuate the positive with six reasons why Marlins fans should be optimistic about the rebuild underway.

KEEP READING

Sign Up and Save

#ReadLocal

Get six months of free digital access to the Miami Herald

SUBSCRIBE WITH GOOGLE

MORE LATEST NEWS

UM women make biggest jump in AP Top 25 after historic road win over Louisville

University of Miami

UM women make biggest jump in AP Top 25 after historic road win over Louisville

February 18, 2019 01:31 PM
Trump proclaims ‘twilight’ of socialism in the Americas during Miami speech on Venezuela

National Politics

Trump proclaims ‘twilight’ of socialism in the Americas during Miami speech on Venezuela

February 18, 2019 06:28 PM
Man arrested after climbing crane near FIU to ask Trump for mercy for Cuban exile bomber

West Miami-Dade

Man arrested after climbing crane near FIU to ask Trump for mercy for Cuban exile bomber

February 18, 2019 08:44 AM

Crime

A pink bat was hidden in his sleeve. Video shows what he did with it at a Metro PCS store

February 18, 2019 05:41 PM
As rebuild continues, Jeter hopes new additions give Marlins a winning mindset

Miami Marlins

As rebuild continues, Jeter hopes new additions give Marlins a winning mindset

February 18, 2019 02:23 PM
Actor Gregg Weiner makes powerful Zoetic Stage debut in ‘Every Brilliant Thing’

Performing Arts

Actor Gregg Weiner makes powerful Zoetic Stage debut in ‘Every Brilliant Thing’

February 18, 2019 09:03 AM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

Icon for mobile apps

Miami Herald App

View Newsletters

Subscriptions
  • Start a Subscription
  • Customer Service
  • eEdition
  • Vacation Hold
  • Pay Your Bill
  • Rewards
Learn More
  • About Us
  • Contact Us
  • Newsletters
  • News in Education
  • Public Insight Network
  • Reader Panel
Advertising
  • Place a Classified
  • Media Kit
  • Commercial Printing
  • Public Notices
Copyright
Commenting Policy
Privacy Policy
Terms of Service


Back to Story