Wisconsin proposal aims to cut mortgage fraud

MADISON (WPR) Lawmakers are trying to eliminate mortgage fraud in Wisconsin by banning some ex-convicts from getting mortgage broker licenses.

The bill was crafted by Milwaukee Representative Jon Richards.  It would prevent ex-cons who've committed certain crimes -- including drug dealing, perjury or embezzlement -- from ever getting a mortgage license, regardless of when the felony occurred.

Richards says his measure would clean up the profession after the housing foreclosure crisis ripped through his city.  He says it’s appropriate for the legislature to take a close look at who it licenses since for most people, buying a home is the biggest purchase they’ll make.

Supporters say the mortgage industry has become a magnet for ex-cons, who -- in many cases -- have drug related convictions.  A recent Milwaukee Journal Sentinel investigation found about 12-percent of the state's mortgage brokers had felony records. Federal law gives most former criminals seven years before they can re-apply for a license.

Critics argue the bill unfairly targets a specific profession.

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Information from Wisconsin Public Radio, www.wpr.org