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A Times Editorial

Financial regulator has to go


In print: Tuesday, July 29, 2008


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When the governor and Cabinet meet this morning, there ought to be more to their discussion about the state's failure to aggressively regulate the mortgage industry than the usual hand-wringing. If the state's top mortgage industry regulator does not resign on the spot, they should fire him. If Don Saxon worked in private business instead of for the state, he already would be gone.

Unfortunately, Tallahassee has a high tolerance for incompetence. Despite a Miami Herald investigation that revealed Saxon's Office of Financial Regulation does very little regulating and lets thousands of felons slide into the mortgage business, Saxon appears to be safe for the moment. Chief Financial Officer Alex Sink wants him to resign but said Monday she won't move to fire him today. Translation: She may not have the vote of Gov. Charlie Crist, who has to be on the prevailing side.

What does it take for a state bureaucrat to get fired? The Herald's eight-month investigation revealed more than 4,000 felons were allowed by the Office of Financial Regulation to get into the mortgage business between 2000 to 2007 despite being convicted of such crimes as bank robbery, fraud and extortion. Yet Saxon has mounted a vigorous if illogical defense, arguing his office considers 25,000 applications a year and rejects 30 percent of them. Volume is no excuse for poor decisionmaking and no comfort to homeowners who have been ripped off by mortgage industry officials who never should have been allowed into the business.

If the Herald's findings are not enough to take action, Crist and the Cabinet should read a scathing report issued in March by the statewide grand jury about the office's regulation of check cashers. Here's a snippet: "We conclude that the agency most responsible for insuring compliance by check cashers has failed to aggressively root out fraud and money laundering from the check cashing industry.''

Sitting as the Financial Services Commission, the governor and Cabinet oversee an office that is supposed to help protect Floridians from mortgage fraud and money launderers. They should hold Saxon accountable for failing to carry out that mission. If they don't, the voters should hold them responsible.



[Last modified: Jul 30, 2008 01:58 PM]



Comments on this article
by jimmy Jul 30, 2008 1:58 PM
Truth is, state and federal banking laws have been highly political for years (just look at the Bill Clinton record). Does nobody remember Whitewater?
by Ben Jul 30, 2008 1:28 PM
Ch. 494, F.S., does not bar felons from being mortgage brokers; in fact, it could be read to contemplate them. And its not like non-felon mortgage brokers are that reputable either. Put the Cabinet's feet to the fire on this one, not Don Saxon's.
by Hal Jul 29, 2008 2:13 PM
Alex Sink just out witted Charlie Crist from all sides . It will be interesting to watch the outcome . McCollum has jumped ship . Bronson is being hush hush . Crist is out on the limb by himself ! Let see how this gets gutted out ?
by Bob Jul 29, 2008 1:26 PM
The fact of the matter is that the legislature has allowed a loophole to exist where the State can issue a "Corresponding Lender" license whereby the entity is licensed and not the individuals. Crooks LOVE this law. WAKE UP PEOPLE!!!
by jimmy Jul 29, 2008 1:22 PM
Whenever some liberal sacred cow--a convicted rapist for example--gets caught, the Times wants us to presume innocence until the final appeal is exhausted. When a Republican is ACCUSED they want him to "...resign on the spot."
by Truth Jul 29, 2008 12:53 PM
Saxon will stay, he's protected by Charlie.
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