By Philip Rucker and Lisa Rein
Washington Post Staff Writers
Wednesday, March 19, 2008 1:25 PM

The Maryland Senate unanimously passed legislation this morning designed to control the housing crisis by stemming the rising tide of foreclosures in the state.

Seeking to strengthen homeowner protections and toughen oversight of the mortgage-lending industry, senators voted to establish mortgage fraud as a crime subject to prosecution.

Senators also passed a bill that would give homeowners in default more time before they would lose their homes. A third bill that passed this morning would prohibit "foreclosure rescue transactions" in which homeowners are tricked into signing over their residences to third parties.

The House of Delegates gave preliminary approval this morning to a similar mortgage fraud bill and is scheduled to debate other foreclosure legislation this afternoon.

Many of the bills are part of a legislative package introduced by Gov. Martin O'Malley (D) designed to prohibit the kinds of loans and predatory practices that contributed to the foreclosure crisis. The governor also wants to establish preemptive measures to help people at risk of losing their home.