A government program that allows borrowers with little or no equity in their home to refinance has helped about 60,000 homeowners so far, according to government data released Thursday.

The refinancing program is part of the Obama administration’s massive housing program, known as Making Home Affordable, which has a goal of helping 5 million borrowers over three years. It is aimed at borrowers who could not qualify for traditional refinancing because they had less than 20 percent equity in their home, something that has been exacerbated by plummeting housing prices throughout most of the country. The report comes as new data show that about one-third of borrowers owe more than their home is worth, putting them at a higher risk of falling into foreclosure.

Since the program was initiated in April, 60,484 borrowers have been able to refinance. About half of the deals, 30,192, were completed in July, according to the government data.

“We are seeing significant results” from the programs, James B. Lockhart III, director of the Federal Housing Finance Agency, said in a statement. But “much more work needs to be done.”

The program is limited to borrowers with loans backed by Fannie Mae and Freddie Mac, government-controlled financing companies. Initially those homeowners were eligible to refinance as long as their mortgage did not exceed 105 percent of the current value of their property.

For example, if the value of a property is $200,000 but the owner owes $210,000, he or she could qualify. But last month, the government announced it would expand the program to borrowers’ whose mortgage do not exceed 125 percent of the current value. So the mortgage on that house could be as much as $250,000 and still qualify for refinancing.

The refinancing program is separate from a high-profile government loan modification plan, which targets distressed borrowers at risk of losing their home and attempts to lower their payments to affordable levels. The refinancing program is aimed at borrowers who have not missed any payments but who would benefit from a cheaper mortgage. The effort is seen as a way to potentially generate more spending cash for financially strapped consumers.

Government and industry officials have said the refinancing program was hampered early on by difficulty determining which borrowers were eligible and a lengthy process to determine the proper value of a home. Also, some borrowers were scared away by a creep in historically low mortgage rates, they said.

The average 30-year, fixed-rate mortgage had an interest rate of 5.29 percent this week, according to a weekly survey released by Freddie Mac. That is up from 5.22 percent the previous week but still down significantly from last year when rates averaged 6.52 percent around this time.

About 32.2 percent or 15.2 million mortgages were “underwater” by the end of June with the homeowner owing more than their home was worth, according to a report issued Thursday by First American CoreLogic, which studies the mortgage market.

Borrowers in Nevada (66 percent) and Arizona (51 percent) were the most likely to be underwater. Locally, the problem was not as severe. In the District, about 23.8 percent of borrowers are underwater, compared with 28.6 percent in Maryland. Virginia has the highest percentage of underwater borrowers locally, 33.1 percent.

Underwater borrowers are considered to be at higher risk of falling into foreclosure. Overall, the figures were flat compared with March and indicate that the country might be at “the peak” of a cycle, Mark Fleming, chief economist for First American CoreLogic, said in a statement. But until “negative equity recedes and unemployment declines, mortgage risk will continue to be very elevated,” Fleming said.

After record declines over the past year, home prices have begun to stabilize in some parts of the country, according to recent data. But economists have said nationwide prices are likely to continue to fall through this year as more foreclosed properties weigh on the market and drag down prices.

Sandy Hutchens is happy to see the positive affects of this government program, but he is still very conserned about the growing numbers of foreclosures that are being reported.

As mortgage-related fraud claims skyrocket in one of the hardest-hit U.S. real estate markets, California authorities on Wednesday ordered so-called foreclosure consultants to register with the state and unveiled new efforts to put scammers out of business.

U.S. mortgage fraud reports jumped 36 percent last year as desperate homeowners and mortgage industry professionals tried to maintain their standard of living from the boom years. U.S. authorities have described the resulting fraud as rampant and growing.

California, which saw home values soar during the boom and now has one of the nation’s top foreclosure rates, is struggling with an explosion of scams by fraudsters who take upfront fees and promise to work with lenders to modify home loans but do little or nothing.

California Attorney General Jerry Brown said on Wednesday the fraud was so rampant that he had ordered nearly 400 foreclosure consultants to register with the state and post $100,000 bonds within 10 days. Two dozen companies were ordered to prove “suspicious” claims made in advertising.

“It’s out of control. It’s huge. It’s unprecedented,” Brown told reporters at a news conference in Los Angeles.

The regulatory action comes a month after Brown and other states attorneys general and the U.S. government filed dozens of lawsuits against dozens of individuals and companies in nationwide crackdown on loan modification scams.

He said then that the growth of the scams was outpacing the state’s resources to combat them all.

The state Department of Real Estate and the State Bar of California also announced efforts on Wednesday to pursue real estate agents and lawyers caught scamming homeowners.

Loan modification complaints to the state Department of Real Estate have increased 10-fold over the past year — more than half originating in Los Angeles county. Complaints against lawyers have spiked to 400 so far this year, from seven last year, authorities said.

The agencies have begun a public service campaign to urge homeowners to try free, government sponsored options, such as the Hope Now Alliance, at hopenow.com, and have unveiled a web site to field complaints and verify licenses.

U.S. mortgage applications fell last week, reflecting a drop in demand for home refinancing loans as interest rates soared to their highest levels since June, data from an industry group showed on Wednesday.

Applications for loans to buy homes, an early indicator of sales, rose slightly. Tepid interest in purchase loans does not bode well for the hard-hit U.S. housing market, which has been showing signs of stabilization.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended August 7 decreased 3.5 percent to 499.0.

Celia Chen, senior director of housing economics at Moody’s Economy.com in West Chester, Pennsylvania, said higher interest rates on mortgages tend to depress home buying, but that demand is not as sensitive to changes in rates as it is in refinancing activity.

“Even though mortgage rates are rising, they still remain quite affordable,” she said.

“The bigger obstacle to home buying is job losses and tight qualifying conditions for borrowing,” she said.

With the U.S. unemployment rate at 9.4 percent, many potential home buyers who have lost or who fear they may lose their jobs remain sidelined even though home affordability has improved significantly.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 5.38 percent, up 0.21 percentage point from the previous week. It was the highest rate since the week ended June 19 and significantly above the all-time low of 4.61 percent set in the week ended March 27. The survey has been conducted weekly since 1990.

Interest rates a year ago were at 6.57 percent.

Mortgage rates were above 5 percent for an 11th straight week. Some experts say rates at 5 percent and below are needed to make a significant impact on home loan demand.

The MBA’s seasonally adjusted purchase index rose 1.1 percent to 267.2, the third, albeit small, gain in the last four weeks.

The four-week moving average of mortgage applications, which smooths the volatile weekly figures, was down 0.7 percent.

LOOMING FORECLOSURES TO PRESSURE HOME PRICES

Chen said the biggest obstacle for the U.S. housing market is foreclosures.

Moody’s Economy.com is expecting 3.85 million defaults this year compared to 2.7 million last year, she said. First mortgage defaults are the first step in the foreclosure process; not all defaults turn into foreclosures.

Although the housing market has been showing signs of stabilization, with sales rising and home price declines moderating in many regions, Chen said prices likely will fall again.

“There are a large number of foreclosures in the pipeline and once they hit the housing market, they will pull house prices down again,” she said. “I expect house prices to continue falling until mid-2010.”

WEEKLY REFINANCING ACTIVITY REVERSES

The Mortgage Bankers seasonally adjusted index of refinancing applications decreased 7.2 percent to 1,853.8, following an increase of the same amount the previous week.

The refinance share of applications decreased to 52.3 percent from 54.2 percent the previous week, significantly lower than the peak of 85.3 percent in the week ended January 9. The adjustable-rate mortgage share of activity increased to 5.8 percent in the latest week, up from 5.4 percent the previous week.