Florida’s Chief Mortgage Regulator Resigns During Cabinet Meeting

During the Florida Cabinet meeting today, August 12, 2008, Office of Financial Regulation (“OFR”) Commissioner Don Saxon announced he would resign, effective September 30, in the midst of an ongoing investigation into reports that his agency licensed thousands of mortgage brokers with criminal backgrounds, including racketeering and money-laundering.

Saxon announced his intention to resign at this morning’s Cabinet meeting after Chief Financial Officer Alex Sink made a motion to force his resignation and the panel approved it.

“We’ve seen very passive management . . . we’ve had real failures as identified in a damning report by the grand jury,” Sink said as Saxon stood at the podium.  “The grand jury said there are billions of dollars being filtered-illegal money, dirty tainted money–that are being filtered through some of the money transaction businesses.”

The Cabinet also approved emergency rules that will prohibit felons who have committed crimes directly related to mortgage brokering, such as money-laundering, extortion and bribery, from ever getting licensed.

The emergency rules will be effective for 90 days.

 

Should you have any questions or comments, please do not hesitate to contact Colodny Fass.

 

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