Update: U.S. Senator Norm Coleman on the Financial Crimes Task Force

Maybe Senator Coleman reads this blog, maybe not. In either case, I just received a reply to my e-mail. While the Minnesota Financial Crimes Task Force is obviously a state organization, I wanted to alert my federal legislators to the newly-created void in mortgage fraud enforcement in case they wanted to address it at a national level. You can read the note I sent in my post on Minnesota Senator Linda Berglin’s response.

Like Linda Berglin, however, Senator Coleman focused on licensing regulations. Regulating licensing and instituting better oversight are certainly necessary components for addressing the mortgage fraud problem, but let’s not overlook the obvious: mortgage fraud is a crime. Or at least it was until everybody started doing it.

It is important to look forward, and I am glad Congress is doing so. But it must also do something about the problem we have now.

Senator Coleman’s e-mail is just after the jump.

Dear Mr. Glover:

Thank you for sending me a link to the March 20th Pioneer Press article regarding the Minnesota Financial Crimes Task Force.

While I appreciate your views on this matter and have serious concerns about mortgage fraud, please note that the task force you reference is a state panel. Therefore I would encourage you to contact your state legislators and Governor Pawlenty. You can look up contact information for your state legislators at http://geo.commissions.leg.state.mn.us/districts/start.html. Governor Pawlenty can be reached at the following address:

Governor Tim Pawlenty
130 State Capitol
75 Rev. Dr. Martin Luther King, Jr. Blvd.
St. Paul, MN 55155

On the topic of mortgage fraud, I am deeply concerned that mortgage fraud complaints have jumped 700 percent in the last five years. I am pleased that the Federal Reserve proposed new rules governing the mortgage industry on December 18, 2007. Under these rules, mortgage lenders would be prohibited from giving people unaffordable loans, limiting prepayment penalties, and engaging in unfair practices. The rules would also require higher levels of disclosure. Here in the Senate, Senators Diane Feinstein (D-CA) and Mel Martinez (R-FL) have introduced the S.A.F.E. Mortgage Licensing Act (S. 2595). This bill would create a national licensing and oversight standards for mortgage brokers and lenders. Please know I strongly support the intent of this legislation.

Thank you again for contacting me. I am humbled to serve as your Senator and hope you will not hesitate to contact me on any issue of concern to you in the future.

Sincerely,
Norm Coleman
United States Senate