California tops a list of states for mortgage fraud activity, as the state├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós courts pursue more cases against alleged frausters, MortgageDaily.com found in an index it released Wednesday. The Web site documented activity in FraudBlogger.com, a mortgage fraud blog. While California claimed the top spot, New York and Florida also found themselves perched considerably high on the index, followed shortly by South Carolina and Minnesota. New York ranked second by dollar volume in mortgage fraud at $199,600,000.

Acknowledging improvements in the larger economy, the Federal Open Market Committee said Tuesday that it would keep a heel on zero interest rates and continue shepherding funds from mortgage-backed securities into agency mortgage-backed securities. The rate for federal funds remains between zero interest and .25 percent since December, and follows an earlier decision by the Fed to buy up $400 billion in Treasuries to ensure lower borrowing costs.

Mortgage application volume leapt to 4.1 percent from the week before on the strength of a boom in refinance applications, according to the Mortgage Bankers Association. The trade group released its data in a Weekly Mortgage Applications Survey for the week. The MBA├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Market Composite Index noted a 4.2-percent increase on a seasonally unadjusted basis from the week before, with 9.3 percent for the Refinance Index and 8.2 percent in declines for the seasonally adjusted Purchase Index.

Speaking before the Senate Banking Committee Tuesday, the inspector-general of the Federal Housing Finance Agency portrayed the agency as one beset by failures to adequately monitor and validate controls for executive compensation, examinations, and more. IG Steve Linick referenced a recent report from his office that found the FHFA needs to improve by taking measures to independently validate executive compensation packages. Compensation approval methods proved controversial last month.

Members of the Senate Banking Committee voted Tuesday to send nominees for top posts at the Federal Housing Administration and Federal Reserve Board to the full Senate floor. Lawmakers approved FHA Acting Commissioner and former BRIDGE Housing CEO Carole Galante 13 to 9 on a largely party-line vote, with only Sen. Bob Corker (R-Tennessee) breaking ranks with GOP faithful to cast in favor of the nominee. Thomas Hoenig meanwhile moved to the Senate floor on a unanimous vote.

At least one key trade group opposes plans by some lawmakers to introduce a raise for mortgage fees in a payroll tax extension. Congress is essentially proposing to raise taxes on millions of potential home buyers in order to pay for a payroll tax cut and other non-housing legislative initiatives, NAHB chairman Bob Nielsen said in a statement. Lawmakers are busy cobbling together a payroll tax plan this week that would extend current rates for employees and their employers.

DebtX announced Monday that it is now the exclusive agent for a sale involving $334 million in loans from a real estate fund that collapsed and filed for Chapter 11 bankruptcy. In a statement, the company said that loans involved in the sale primarily involve Acquisition, Development and Construction loans backed by land from nine U.S. states. Eighteen loans will go for sale. This includes tens of millions of dollars in non-performing loans from California and Wyoming.

Joining a list of other mortgage fraudsters Monday, three Cleveland residents received jail time for their role in a multi-million-dollar scheme while two others in Maryland and Virginia saw their names in fine print over $700,000 in fraud. Home went into foreclosure as a result of much of the alleged crimes. MReport collected the stories from a bevy of news sources that include the FBI and a Cleveland news outlet. This comes on the heels of other mortgage fraud activity as it increases nationally.

Courts across the country slapped defendants with charges over mortgage fraud this week, as a title agent, her husband, and a Brockton man received charges and a so-called kingpin from New York saw the next four to 12 years of his life consigned to prison. MReport culled stories from multiple news outlets to deliver the mortgage fraud blotter Friday for the past week. Acts of wire fraud, bank fraud, and identity theft populated the accounts of defendants and convicts alike.

Brokers and loan officers with independent mortgage banks and subsidiaries saw profit margins for their loans more than double on average over the last quarter, according to the Mortgage Bankers Association. The trade group released its findings in the Third Quarter 2011 Mortgage Bankers Performance Report, which it drummed up with production data reports from fewer than 300 companies. The MBA reported that loan originations averaged $1,263 over the third quarter.