The state should step up regulation of the home loan industry, according to a report from Gov. Charlie Crist’s chief inspector general, Melinda Miguel. The report faulted the state Office of Financial Regulation in the scandal that saw thousands of convicted felons enter the mortgage industry during the housing boom. Many people who evaded background checks went on to commit mortgage fraud, giving Florida the highest rate of home loan fraud in the country. Miguel’s report urged legislators to step up regulations on thousands of mortgage peddlers operating outside the bounds of state regulation — so-called loan originators — and to impose larger fines for fraud.