Criminals in the mortgage business? Who knew?

[The Backlash Cometh]

Sink: Bank chief should quit

By Jennifer Liberto, Times Staff Writer

Published Monday, July 21, 2008 8:31 PM

Editor's note: This story contains corrected material. See end for details.

TALLAHASSEE — Florida's top banking regulator is under fire after a newspaper investigation exposed that thousands of convicted criminals were licensed as mortgage brokers during the state's recent real estate boom.

The Miami Herald reported Sunday that more than 10,000 mortgage professionals with criminal records worked in Florida between 2000 and 2007. And more than 4,000 of that number were licensed brokers who cleared background checks despite committing crimes — like fraud, racketeering and extortion — that state regulators are supposed to flag and not license.

The story, based on an eight-month investigation, linked several of the criminals-turned-brokers to cases of mortgage fraud where either banks or borrowers fell victim.

Now, Florida Chief Financial Officer Alex Sink is calling for Financial Regulation Commissioner Don Saxon to step down. Sink is one of four members of the Florida Cabinet, which oversees the agency that regulates mortgage brokers. She needs Gov. Charlie Crist's approval to oust Saxon.

"She has lost her confidence in the current commissioner, as perhaps may have Floridians across the state after reading these news reports. It's essential you have leadership that restores confidence," said CFO spokeswoman Tara Klimek.

Crist's chief of staff Eric Eikenberg called the findings unacceptable and said he expected the Cabinet to discuss the matter and Saxon's future at its next meeting July 29. Crist was in Europe on Monday and could not be reached.

"It's outrageous. There's no other word for it. It's outrageous," said Eikenb

http://tampabay.com/news/politics/state/article726835.ece