Florida’s Top Financial Regulator Stepping Down Under Pressure
Don Saxon, scheduled to meet with Gov. Charlie Crist and Cabinet to propose new regulations emerges instead with a retirement announcement.
Palm Coast, Florida – August 12, 2008 – Three weeks ago, a Miami Herald series exposed a gross lapse in oversight by the Office of Financial Regulation, which oversees the state mortgage industry. (related story) According to the paper’s report, the office had allowed over 10,000 people with criminal backgrounds to work in the mortgage industry since 2000. The result was a loss of at least $85 million by consumers and lenders. Florida CFO Alex Sink asked then for Commissioner Don Saxon’s to resignation.
Governor Charlie Crist ordered Saxon to come up with recommendations to reform the mortgage industry two weeks ago. Saxon was scheduled to meet with the Governor and his Cabinet today, bringing a 30-page report of sweeping regulatory reforms. His retirement, effective September 30, was announced by way of a press release from his office.
Regulations Overdue
The fast and loose lending days are over. The mortgage process now is back to what it was years ago when local banks did most of the lending. The paper was held by them and not sold. It will eliminate the marginaly qualified. The recovery of the real estate values will happen when the US economy recovers from all the spending outside the country. We still have years to go to do that, these regulations will not bring housing prices up, only better jobs for buyers will do that.
Reform Saxon with a jail term
The chaos caused by Commissioner Don Saxon in the mortgage lending industry should be punished with a nice long jail term, not a resignation effective 6 weeks from now. What is in the water in our State Capitol? This man has ruined countless lives, encouraged rampant greed and corruption in the mortgage industry, and helped foreclosures reach record highs. But he gets to keep his pension and health benefits. Too bad investors and homeowners won’t be treated that kindly.