On Tuesday chief inspector general, Melinda Miguel, reported that the state Office of Financial Regulation failed to order federal background checks and fingerprint scans for people applying for mortgage licenses as required by state law.
Florida happens to have the highest home load fraud numbers in the country. The Miami Herald recently ran a story in which it was shown that 10,000 people with criminal histories were allowed to sell loans during the housing boom.
It also appears it was mostly the unregulated ‘loan originators’ that caused much of the problems. Many who did not qualify to be loan brokers then went on to become loan originators. Senators and Respresentavies are now talking about legislation strictly defining the state Office of Financial Regulation’s chain of command. They will consider bringing in state officials to testify under oath as part of this process.