Securities regulators need to provide more oversight over the licensing of mortgage brokers says some industry attorneys following the resignation of Don Saxon, the Florida Commissioner of Securities, amid reports published in the Miami Herald that his agency let many convicted criminals work in the mortgage business, including bank robbers and racketeers. Florida, however, is not the only state that has seen the resignation of it's securities commissioner: G. Brent Bishop was fired as Ohio's Securities Commissioner in August, 2007. Mr. Saxon and Mr. Bishop both faced pressure after local newspapers analyzed records of mortgage brokers, although Florida is the only state that places the licensing of mortgage brokers directly into the hands of its securities division.
Joseph Borg, the Director of Alabama's Securities Division and former president of the North American Securities Administrators Association (NASAA), said the biggest problem is resources. A state's legislature is the body required to fund licensing agencies but it often does not have the money to do detailed background checks, and without funding the job can't get done.
With compliments to Bruce Kelly.
Email: bkelly@investmentnews.com