As the mortgage industry shifts from a market heavy in refinancings to one with a growing number of purchases, mortgage fraud schemes are changing also, say vendors who provide quality-control services.

"The type of fraud that appears is different," said Nancy, Monson, executive officer in charge of auditing at Tena Companies, which monitors mortgage applications for lenders.

In the past six months, some lenders and quality-control companies have seen an increase in fraud.

Lenders have seen more of two particular ploys, vendors say, One is where a loan applicant identifies himself as an employee instead of a company's owner. The other is a fraudulent claim that a property will be owner occupied.

In an effort to stem owner-occupancy fraud, Washington Mutual Savings Bank, Seattle, now sends certified mail to applicant's addresses to see who will sign for it.

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