House and Senate appropriators are increasing the Department of Housing and Urban Development's (HUD) resources to combat mortgage fraud, update its technology, while increasing the Federal Housing Administration's (FHA) lending capacity to $400 billion.

The conference report on the HUD appropriations bill for fiscal year 2010 includes $20 million to combat mortgage fraud, and $80 million to modernize its legacy computer systems.

The appropriators also provide the HUD Inspector General with an additional $5 million to conduct audits of FHA-approved lenders. (Over the past week HUD banned two FHA lenders.)

FHA endorsed $328 billion in loans in fiscal yeas 2009, which ended Sept. 30, and its business continues to grow. (The $400 billion figure is for full-year 2010.)

Ginnie Mae, which provides a secondary market outlet for FHA and other government-backed loans, is in line for a $185 billion increase in commitment authority to $500 billion in full-year 2010, up from $315 billion in 2009. Congress is late in passing the full-year 2010 budget bills.

Democratic leaders have rolled the HUD appropriations bill into a consolidated appropriations bill that the House of Representatives is expected to pass soon. The timing in the Senate is unclear.

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