As mortgage lenders accumulate losses from foreclosure listings and as they implement stricter processes and more requirements for loan applicants, incidents of loan fraud have started to increase.

According to LexisNexis Service’s Mortgage Asset Research Institute (MARI), the number of mortgage fraud incidents has risen to record levels in the first months of 2009. As more and more lenders are limiting their mortgage loan approvals because of their apprehensions about foreclosure listings, incidents of loan fraud soared in 2008 by 26 percent from fraud figures in 2007.

Denise James, director for residential mortgage solutions at LexisNexis, said the large numbers of foreclosure listings, the reduced number of approved loans and the economic downturn have been forcing more and more people to commit loan fraud.

MARI’s data showed that Rhode Island had the highest mortgage fraud rate in the first months of 2009. For the first time in years, Rhode Island entered the top ten ranking in number of fraud compared to number of loan originations in the state.

Meanwhile, Florida, the second state with the highest rate of foreclosure listings in 2008 and in January 2009, has posted the second highest rate of loan fraud in the first months of 2009. In 2007 and in 2008, it led fraud rankings, now led by Rhode Island.

James of MARI said that in 2008, the most dominant type of home loan fraud was application form fraud. Around 61 percent of recorded frauds in 2008 involved the use of fraudulent information on application forms.

The second most frequent type was the use of fraudulent financial statements and tax returns. This type represented 28 percent of all frauds in 2008. The third was inflation of property appraisal. The other fraud types include misrepresentation of information on deposit, employment and credit documents.

James also said fraud incidents related to foreclosure listings are increasing. Scammers and swindlers are enticing distressed homeowners with offers of loan modifications that never happen. Some cons even persuade borrowers to give them their deeds to the property so they could modify their loans faster.

Furthermore, fraud incidents involving older and immigrant homeowners are increasing. Scammers take on the identities of immigrant and elderly renters and then apply for mortgage loans. They pay for just a few months and then live in the properties rent-free after the homes are added to foreclosure listings.

According to the Mortgage Banker’s Association, their mortgage applications index has plunged by 23 percent, from 591.4 to 455.4 during the week that ended September 26.

With the collapse of Wall Street and subsequent chaos in the finance and banking industries, it has become more and more difficult for home buyers to get approved for mortgage loans. To make matters worse, the rising foreclosure rate has made lenders cautious and forced them to tighten their lending guidelines.

Last month, the government decided to take control over Fannie Mae and Freddie Mac in an effort to address the problems in the housing and mortgage industries. The said rescue plan involves injecting these institutions with about $100 billion each to make sure that they stay afloat in the midst of the credit crisis.

Still, the overall condition of the housing industry remains to be unstable. Refinance index also fell by 34.7 percent compared to the previous week while purchase index dropped by 10.9 percent. On the average, the interest rate for a 30-year fixed rate mortgage loan slipped slightly by 0.01 percent.

Nationwide, home prices continue to decline and inventory of homes – both new and existing – has grown considerably. Although the implementation of the $300 billion housing rescue program started last October 1, many analysts are not sure if it would be enough to save the millions of lenders and distressed homeowners who are struggling with bankruptcy and foreclosure.

Even buyers, who would have passed the strict lending guidelines, have decided to step away from the market until such time that they are sure that their money will be safe and that their decision to invest in real estate properties will be a sound one. Some of the buyers are checking out foreclosure homes for sale in order to minimize the risks since these repossessed properties are sold at a relatively-cheaper price.

For now, there is no indication whether the market will soon bottom out and if the government efforts will yield positive results. For certain, it will be a waiting game for everyone.

With the housing industry still trying to recover from the losses suffered because of the mess in the subprime market, it is indeed surprising that the government-sponsored enterprise Fannie Mae has announced that it is making an effort to boost finances. Unfortunately, this effort comes with a high price for consumers.

Because of the $2.3 billion loss incurred, Fannie will have to change mortgage pricing and liquidity. The federal enterprise actually plays an important role in the mortgage industry. Fannie Mae usually purchases home loans, secures them and sells them once again to investors.

Adjustments that the public can expect include charging a higher risk premium in the purchase of loans in a declining market, stopping the purchase of high risk loans and increasing certain fees. These changes will certainly have an impact on mortgage credit costs and availability.

For the National Association of Realtors, the actions taken by Fannie Mae could mean the loss of many potential buyers who will be turned off by the additional fees. To make matters worse, Freddie Mac is also considering the same measures in order to cover their losses as well.

The ones who will be hit hardest by the added fees will be first time home buyers who have been standing on the sideline for so long, hoping that market conditions will allow them to purchase an affordable home. If the number of first time buyers entering the market will decline, it could signal another fresh wave of decline in home sales activity.

Sellers, on the other hand, will also be adversely affected by these measures especially since market competition is already tough. With a reduction in the number of potential buyers, home prices may decline even further.

Measures taken by Fannie Mae is considered to be necessary since it has to satisfy its shareholders, maintain profitability and avoid a situation where the government will have to rescue them.

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Another option that troubled homeowners should explore if they can no longer meet their mortgage obligations is refinancing. But before you heave a sigh of relief, you should know that this option is not for everyone.

For starters, you must have equity on your property. You can determine whether you have equity or not by subtracting the mortgage debt from the current market value of your home. If you are enjoying equity, then you will probably have a good credit score. Also, it is important that your lender has not filed a Notice of Default yet, which could adversely affect your credit rating.

If you meet these two requirements, you will have a good chance of getting approved for a new loan. In refinancing, you will simply be taking out a new loan with more manageable payments and even lower interest rates. Essentially, you will be paying off your existing loan – the one which you are having trouble paying.

Once you have decided that this is the option that will help prevent foreclosure, you must now check out the loans being offered in the market. Luckily for you, conditions are quite optimal for borrowers. Interest rates are at record low and underwriting guidelines are stricter.

When shopping for a new loan, you must stay away from the hybrid loans that offer options such as interest-only payments and adjustable interest rates. You should know that these kinds of loans were considered to be responsible for the mess in the subprime industry. Many borrowers during the last housing boom failed to understand the terms and conditions of these risky loans and ended up losing their homes to foreclosure.

As soon as you have found the right loan for you, you will no longer be worried about losing your home to foreclosure. Of course, you will have to make sure that are able to meet all your payment obligations to avoid being in the same situation again.

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It is not at al surprising that many homeowners are struggling to make their mortgage payments considering the unbelievably-high prices of fuel and increased cost of living. Therefore, it is not remotely impossible to find yourself with no money left to cover your mortgage payment for the month.

The first thing you have to do in a situation like this is simple. Do not panic.

Most homeowners fail to realize that the moment they start panicking, they will no longer be able to think clearly and fail to address the problem at hand objectively.

For missed mortgage payments, you will only need to contact your lender and set an appointment. Before the scheduled appointment, you must prepare any relevant financial documents that will help you explain your current financial condition. Of course, this is assuming that you have determined the reason for your incapability to meet your mortgage obligations.

Once you are there, you can ask your lender for a repayment option that will work for you. For instance, you and your lender could set up a short-term plan that will involve additional payments on top of your regular mortgage payments, in order to pay for the amount past due. Or, your lender might even simply forgive you for the missed payment and allow you to settle the unpaid balance, free of penalties or interest.

If you want to avoid foreclosure, the key is always communication. It will certainly not help you if you ignore your lender’s calls and letters and do not explain why you have missed your mortgage payment. If in case you suffered from a temporary financial setback, you will be surprised to know that lenders are usually open to discuss mortgage problems and are not keen on filing foreclosure.

Missed mortgage payments should not be something that you must worry about. Most homeowners experience this problem and many of them have addressed it quite successfully.

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For the week ending April 11, the volume of mortgage applications increased by 2.5 percent. This is according to the survey conducted by the Mortgage Bankers Association each week. During the previous week, the mortgage application index was pegged at 725.6.

Among the contributing factors is the increase in refinance application volume experienced during the week, which roughly accounted for about 53.5 percent of the total home loan applications. The refinance application volume index was observed to increase by 5.2 percent.

The increase in mortgage applications may or may not be indicative of improving market conditions. But many experts

believe that such an increase can be interpreted as an improvement in buyer/owner confidence. In this case, homeowners are actually trying to work out their mortgage problems by refinancing their homes.

With the mortgage rates falling last week, many home owners decided to take advantage of such favorable condition.

Refinancing is considered to be one of the best options that distressed homeowners should consider. This option is especially perfect for individuals or families who are suffering from temporary financial difficulties. Home owners and lenders will have to determine whether there will be changes in the payment terms or modifications in the loan itself. Other options that owners with mortgage problems can consider include selling, hard money lenders, deed in lieu of foreclosure and bankruptcy.

Some owners who try to work out their mortgage problems end up being scammed by scrupulous individuals and companies. Distressed owners should be very careful when they are offered relief from their mortgage problems especially if it involves too-good-to-be-true solutions.

It is always recommended that you speak with your lender first before making any decision regarding your mortgage debt. It would also be wise to learn about foreclosure in order to determine what options are just right for you.

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Last year, there was a 42 percent increase in mortgage frauds reported by banks. The said frauds were discovered when banks decided to become cautious in approving mortgage applications. In 2006, there was a recorded 37,313 mortgage fraud reports.

Based on the reports filed by financial institutions and banks, the most common mortgage frauds involved:

• Misrepresentation of assets or income
• Misrepresentation of borrower’s intention of becoming a primary resident
• Inflated appraisals
• Forged documents

According to the US Treasury, banks and financial institutions have now become adept in discovering and reporting fraudulent activities. Mortgage brokers were even singled out for initiating these frauds since they were the ones that submit the application and failed to confirm the information submitted to them.

It was also noted that there were significant increase in the incidence of “cash out” refinancing tied to fraud reports, where equities were pulled out by borrowers.

Last month, the Mortgage Asset Research Institute reported that Florida posted the most mortgage frauds for 2007, followed by the states of Nevada, California, Michigan, Georgia and Utah. It was the second year for the state.

In line with this, the Mortgage Bankers Association also called for over $31 million in funding for the following five years for the Justice Department and the FBI. The fund will be used to pay for new prosecutors and investigators that will be responsible in fighting mortgage frauds.

When applying for mortgages, you should make sure that all your documents are in order. All information should be accurate and correct. It is very important that you be honest and upfront in order for your application to get approved quickly.

There are actually brokers you can rely on to help you when it comes to getting approved for loans. In this regard, you should be wary of individuals who make too-good-to-be-true offers. When it comes to foreclosure news and buying tips, you can depend on Foreclosure Listings Nationwide.

For the week ending on March 28, the volume of mortgage applications dropped by 28.7 percent. This significant tumble was observed in a weekly survey conducted by the Mortgage Bankers Association. The previous week saw a jump in mortgage application volume by 41.1 percent.

The volume of refinance mortgages actually fell by 38.1 percent, which could attribute to the overall drop in mortgage application volume. Purchase mortgage application declined by 11.8 percent.

The mortgage volume index was recorded at 688.3. This means that the number of mortgage applications was 6.883 higher compared to the first MBA data gathered in 1990. This index peaked in May 2003 when it recorded an activity of 1,856.7.

This survey offers a good snapshot of lending activities among commercial banks, thrifts and mortgage bankers. It can be mentioned that the drop in the number of mortgage applications is actually not surprising considering the increase in mortgage rates for the 30- and 15-year fixed-rate home loans.

Interest rates for the 30-year mortgage went up to 5.75 percent while rates for the 15-year mortgage rose to 5.27 percent. Last week, rates were at 5.74 percent and 5.23 percent respectively.

Clearly, home buyers are waiting for mortgage rates to drop before making a decision to buy a home. With the fears of recession looming, it is normal for consumers to be very cautious in their decisions to invest. On the other hand, these buyers and investors can always consider foreclosure homes as good investments especially with their lower-than-market asking prices.

Many buyers have enjoyed the savings that these foreclosed properties have offered. In addition, the current large foreclosures supply guarantees more choices. These re-possessed homes can be bought from foreclosure auctions organized by the local counties. If you are looking for the hottest deals, you should utilize foreclosure listings offered by professional realtors such as Foreclosure Listings Nationwide.

According to the National Association of Realtors, pending home sales might have dipped last November but it can be expected to pick up in the last six months of 2008.

The index of existing home sales has dropped to 87.6 from 89.9 of October 2007. The lowest Realtors index was recorded in August 2007. The index plummeted to an 85.5, an all-time record. For the final Realtors index report for 2007, the group expects a 12.7 percent decrease from 2006.

Many analysts are expecting the housing market problems to worsen especially with the weakened labor market. Chief Executive Daniel H. Mudd of Fannie Mae hopes that home prices may start gaining, albeit modestly, by 2010.

Meanwhile, the group projects home sales of 5.91 million in 2009 and 5.7 million for this year. The Realtors are not certain if a recovery in pending home sales can happen by spring or by the end of the year.

Home sales have been greatly affected especially with the subprime mortgage crisis still affecting home appreciation values. The large number of foreclosure homes has driven down property values in many cities. There has also been significant impact on the nation’s economy as many mortgage lenders filed for bankruptcy.

Although there is a large inventory of cheap properties, many buyers and investors are still standing in the sideline and bidding time, waiting for home prices to fall further. In addition, buyer confidence remains to be shaky as the nation tries to brace their selves from the possibility of a recession.

Buyers looking for the best deals in amazing foreclosure homes should only trust reputable brokers like ForeclosureListingsNationWide.com. Aside from regularly updated foreclosure listings, you can also receive many helpful tips on buying foreclosure homes.

Reforming the mortgage industry is being considered as one of the most potentially effective ways to address the present foreclosure crisis. A House Bill, authored by Massachusetts Representative Barney Frank, is currently being debated in the House Financial Services Committee. The mortgage reform bill will be instrumental in preventing another foreclosure crisis in the future. Last October, consumer advocates voiced their concern that the changes in the lending guidelines do not fully address the problems in the industry.

But after a couple of weeks, the mortgage reform bill has now received two key endorsements from Representative Spencer Bachus and Representative Judy Biggert. These endorsements will certainly help avoid a political fight.

Amendments included in the mortgage reform bill include assigning the Federal Reserve as regulator, establishing the liability of the secondary market as well as strengthening the protection of the lenders against frivolous lawsuits. The said bill will still have to be cleared by the committee before being introduced to the House floor.

The current foreclosure crisis felt all over the nation is basically being blamed to relaxed lending guidelines. Borrowers are not protected from predatory lenders and at the same time, not allowed to exhaust all possible options to stop foreclosure due to time constraints. Lenders, on the other hand, are not protected from claims of illegal practices.

Last year, over one million homes were lost to foreclosure and millions more are expected in the next couple of years. About 14 percent of the total 2.2 million subprime loans are already in default and the scheduled reset will surely add more. Nevada, California and Florida lead the nation’s list of states with highest foreclosures rate and 3rd quarter records showed a 30 percent increase from last quarter.

For more of the latest news on the foreclosure crisis, you should check out Foreclosure Listings NationWide.