New Mortgage Loan Regulations Might Stall Market

New Mortgage Loan Regulations Might Stall Market
18 Jan

If you are looking for a new mortgage loan then you may be faced with some trouble from financial mortgage lending institutions because of new regulations that are more restrictive about the way lenders handle mortgages. The new loan regulations may essentially make home mortgage loans less profitable for mortgage lenders which could dry up the market as lenders turn to more profitable lending practices.

Mortgage Market

The home mortgage market may suffer from the new regulations however, the new loan regulations are meant to protect the market from loan abuses like those that were seen in the mortgage meltdown.

The authorities responsible for following and investigating insurance claim scams has stated that the people behind the notorious insurance scams that gained them over 1.4 million dollars seem to be messing up and diverting away from the plans that worked for them 5 years ago. The authorities state that investigations have led to great discoveries. It discovered that the scammers would first rent homes in South Miami. Then they would start to put a lot of used furniture and clothes accompanied by other items from cheap stores. After the house is filled with furniture and clothes, they would then purchase insurance policies for renters. Months later, comes the most important part of the plan, they would put a candle and they would “forget” all about it, they would put it near anything that would catch on flames in the matter of seconds, such as a curtain or a plastic plant. So in a matter of minutes, the whole house would be on fire and the whole interior of the house would be burnt. Then, of course, they will file a claim depending on their renter insurance. The claims can reach as high as one hundred and twenty thousand dollars.

This plan worked for the ringleaders and has made them get millions of dollars in their claims, but according to Katherine Fernández Rundle, the Attorney of Miami-Dade, they started to become reckless. As investigations have discovered that the scammers would use the same clothes and furniture and other items from the burnt house, and they would put it in another house, and they would repeat the whole process again. They didn’t even bother buying new furniture, the same furniture that they filed the claims on, the one that was already burnt; they used it in the next house. It is like they didn’t even try to hide what they were doing.

All of these investigations were a part of an operation that was named Candlelight. This operation was cooperation between the Police Dept. of Miami-Dade, the Attorney office, and the Fire Marshal of Florida. According to the Attorney, almost forty percent of the insurance scams and fraud in the state of Florida, according to this source, takes places in Miami-Dade. Commenting on this, the financial officer of the state, Jess Atwater said that the only ones who are getting hurt by such fraud and scams are the Insurance companies and the honest homeowners. As with the increase of the fraud rates and scams, the rates and the premiums will keep going up. So the people who are doing these scams should realize that the insurance companies are not the only victims of such crimes.

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