Real Estate & Property Law
1000s of Criminals Worked in Florida Mortgage Industry
Posted Jul 21, 2008, 01:28 pm CDT
By Martha Neil
To work as a mortgage broker in Florida, an individual has to be licensed. But no licensing requirement applies to mortgage originators.
As a result, tens of thousands of individuals helping Florida homeowners get mortgages haven't been licensed--among them, 5,306 loan originators with criminal histories, reports the Miami Herald in one of a series of three articles. "Worse, those include 2,201 who had committed financial crimes, such as fraud, money laundering and grand theft," the article adds.
This lack of regulation and oversight has contributed to the foreclosure crisis in Florida, according to the article. Even when outright fraud occurs and, in some cases, is criminally prosecuted, the punishment meted out by the state's judges is often light.
''There has to be some way to know in this industry whether you're dealing with a convicted felon,'' says Assistant U.S. Attorney Neil Karadbil. ''At least borrowers or employers should know that.''
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