Stricter Fla. Mortgage Regulation Still is Lacking, Newspaper Says
Despite a crackdown on individuals in Florida who had a significant role in writing millions of dollars worth of troubled mortgages, some of their colleagues who have been involved in the problem deals continue to ply their trade.
Even though a new law bars criminals from being licensed as mortgage brokers, for instance, two individuals who pleaded guilty more than six months ago to conspiracy charges related to a case against Orson Benn, a former vice president who worked in New York for Argent Mortgage Co., the nation’s largest subprime lender, are still licensed, reports the Miami Herald.
And, although Benn is serving an 18-year sentence, after being convicted in a mortgage fraud case, as detailed in an earlier Ledger article, a 48-year-old woman in Miami who worked on many of Benn’s mortgage applications still sells mortgages.
She has never been accused of committing any crime, but of the 100 Benn-related mortgages she brokered “nearly all [were] based on false and misleading financial information,” the Herald writes. Her lawyer says she has done nothing illegal, and the woman herself blames borrowers for any erroneous information.
Related coverage:
ABAJournal.com: “Despite S&L Debacle Decades Ago, Most Hard-Hit States Didn’t Amp Up Regulation”
ABAJournal.com: “1000s of Criminals Worked in Florida Mortgage Industry”
Miami Herald: “Legacy of tainted home loans: vacancy, vandalism, foreclosure”
