State mortgage regulator forced to resign (FL) over more than 10.000 criminals working in the mortgage industry!!! (loan officer, real estate)

[bentlebee]

State mortgage regulator forced to resign - Bay News 9 (http://www.baynews9.com/content/36/2008/8/13/373160.html?title=State+mortgage+regulator+forced+ to+resign - broken link)

Don Saxon faced criticism over the revelation that more than 10,000 people with criminal records were allowed to work in the state's mortgage industry. His critics said he should have done something to keep those convicted of financial crimes from obtaining licenses as mortgage brokers and originators.



So my run in with a 3 x convicted felon who was my realtor isn't just one case...the mortgage broker she introduced us to....we never checked him out....so my question to the State legislators is: Are you going to check the realtors and other professionals who are related to mortgages?

We never had a mortgage!!!

[Annemieke Roell]

Originally Posted by bentlebee

State mortgage regulator forced to resign - Bay News 9 (http://www.baynews9.com/content/36/2008/8/13/373160.html?title=State+mortgage+regulator+forced+ to+resign - broken link)

Don Saxon faced criticism over the revelation that more than 10,000 people with criminal records were allowed to work in the state's mortgage industry. His critics said he should have done something to keep those convicted of financial crimes from obtaining licenses as mortgage brokers and originators.



So my run in with a 3 x convicted felon who was my realtor isn't just one case...the mortgage broker she introduced us to....we never checked him out....so my question to the State legislators is: Are you going to check the realtors and other professionals who are related to mortgages?

We never had a mortgage!!!

I can only speak for OK but us appraisers have to undergo a background check. And if I am not mistaken, so do Real Estate Agents/Brokers.

Loan officers, however ..... the people who are entrusted with financing one of the largest, if not THE largest, purchases in your life is barely regulated. In fact, the enforcement office of the banking dept (I probably have the name all wrong .... I can't remember wxactly what they are called) in OK is, as recent as a year ago, only open for phonecalls on Wednesdays and is staffed by volunteers.

Go figure, eh?

[bentlebee]

Well a realtor has to do fingerprinting and the convicted felon who was my realtor in FL. was fingerprinted before. She was 3x convicted and still after her third conviction got her real estate license!!! So something is definitely wrong with the way they give out licenses and do the background checks or don't do the background checks.....

"His critics said he should have done something to keep those convicted of financial crimes from obtaining licenses as mortgage brokers and originators." quote.

So it seems they have a license!

[rcarrillo]

Originally Posted by bentlebee

Well a realtor has to do fingerprinting and the convicted felon who was my realtor in FL. was fingerprinted before. She was 3x convicted and still after her third conviction got her real estate license!!! So something is definitely wrong with the way they give out licenses and do the background checks or don't do the background checks.....

"His critics said he should have done something to keep those convicted of financial crimes from obtaining licenses as mortgage brokers and originators." quote.

So it seems they have a license!

Yes, there are many with licenses... and many more working without them. Also, only mortgage brokers were covered by licensing requirements. Bank and credit union loan officers are supervised by the bank and they set whatever standards they want.

Every state has a different standard (although we are shifting to a national mortgage licensing system) and can require coursework, exams, background and credit checks as the see fit.

Until recently many stated had no licensing or registration. North Carolina started the background/credit check and class/exam requirement for brokers back around 2002. They have kept increasing the standards, but I think it was always the case that those with financial crimes or discplinary action from financial regulators were not allowed to get a loan officer license.

[brokerdave]

as far as florida goes, they require finger printing and a fbi background check. as far as felony's are concerned its basically specific to fraud felony's. i had a colleague years ago that had a drug charge from college and he had to submit 3 letters of recommendation before the state of florida allowed him to test for the license.

half the states still don't have license requirements for mortgage brokers. and as someone mentioned banks aren't even required to hire licensed individuals. when you walk into a retail branch and talk to there "mortgage expert" they probably dont even know what the laws are regarding mortgage contracts, state or federal.

I am in support of a national licensing, though I dont think it will happen.

[bentlebee]

The one that I mentioned was convicted for fraud commited with checks, grand theft 2x!

So IMO she should never even have a license after 3 felon convictions!

Something is wrong with the legislation and should change a.s.a.p.

[brokerdave]

Originally Posted by bentlebee

The one that I mentioned was convicted for fraud commited with checks, grand theft 2x!

So IMO she should never even have a license after 3 felon convictions!

Something is wrong with the legislation and should change a.s.a.p.

i agree. i am certainly not condoning it either way. but the check fraud should have been a huge red flag. the grand theft could have been a crazy love/hate relationship. but these separate are one thing, stacking these up with a history is whole other thing.

[bentlebee]

Originally Posted by brokerdave

i agree. i am certainly not condoning it either way. but the check fraud should have been a huge red flag. the grand theft could have been a crazy love/hate relationship. but these separate are one thing, stacking these up with a history is whole other thing.

No the grand theft was for shoplifting expensive jewelry (over $ 4,000.-), brand name purses (like $ 800.- and over), etc., so all this should be a huge red flag to give some one a license to get into people homes...while already shown no respect for public stores and malls....after 3 convictions and g.. knows how many times she got away with it without being caught....(this was what was published in the public records) , the State gave her a license...

[rcarrillo]

Originally Posted by brokerdave

as far as florida goes, they require finger printing and a fbi background check. as far as felony's are concerned its basically specific to fraud felony's. i had a colleague years ago that had a drug charge from college and he had to submit 3 letters of recommendation before the state of florida allowed him to test for the license.

half the states still don't have license requirements for mortgage brokers. and as someone mentioned banks aren't even required to hire licensed individuals. when you walk into a retail branch and talk to there "mortgage expert" they probably dont even know what the laws are regarding mortgage contracts, state or federal.

I am in support of a national licensing, though I dont think it will happen.

Agreed, banks got let out of a lot of the blame but they set the rules for the "liar loans" everyone hates now and underwrote them. As opposed to brokers that were regulated by their companies and at least some state regulations (although lacking and/or missing in some states) banks were not held to any state licensing/registration requirements.

The new housing bill, HR 3221, does include a provision for a national all originator registry. It is supposed to include bank LOs as well and set national minimum standards, which states can increase. Many states already were setting up for the NMLS (national mortgage licensing system) this year, NC just went through the conversion process this month.

I hate government interference in business, but I think there is a good reason for setting minimum standards for those that work with clients in financial matters.

[rcarrillo]

Originally Posted by bentlebee

No the grand theft was for shoplifting expensive jewelry (over $ 4,000.-), brand name purses (like $ 800.- and over), etc., so all this should be a huge red flag to give some one a license to get into people homes...while already shown no respect for public stores and malls....after 3 convictions and g.. knows how many times she got away with it without being caught....(this was what was published in the public records) , the State gave her a license...

Yeah... no reason that someone that stole from stores and wrote bad checks should be given a license to work in a fiduciary position. I mean maybe there is a case for special exceptions if someone was 18 and shoplifted or did something stupid, we can't hold things against people forever.

But that seems a little excessibe to say there was some "mitigating reason" why they should be given access to people homes and financial futures.

One story you will love: Morethan 40% of mortgage brokers in Indiana no longer have a license to do business in the state. The Indiana Secretary of State recently revoked licenses for 393 of the state's 950 mortgage brokerages for failure to comply with a new state law. The law was that all branch managers had to have 3 years experience and pass a test and background check.

~10% of the 950 had the mail "returned to sender", so they were likely closed for business. That still means ~30% of the states brokers either were unable or unwilling to comply with the new law.