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Mortgage-fraud bill goes to Obama to sign

WASHINGTON - Congress yesterday sent the president a bill to clamp down on mortgage fraud and set up a $5 million independent commission to investigate the cause of the worldwide financial meltdown.

    by By Anne Flaherty, Associated Press, Inquirer
    Published 

WASHINGTON - Congress yesterday sent the president a bill to clamp down on mortgage fraud and set up a $5 million independent commission to investigate the cause of the worldwide financial meltdown.

President Obama is expected to sign the bill. The House agreed yesterday to a Senate version of the bill, 338-52.

Obama and other supporters say the bill's estimated cost of $265 million a year will more than pay for itself because of the fines and penalties that would result from increased government oversight.

"No one should want to see those who engaged in mortgage fraud escape accountability," said Sen. Patrick J. Leahy (D., Vt.).

Leahy, chairman of the Senate Judiciary Committee, co-sponsored the mortgage-fraud bill with Sen. Charles E. Grassley (R., Iowa). They estimate the money could hire 160 special FBI agents and more than 200 support staff, including forensic analysts.

Others in line to receive money include the Justice Department, the Securities and Exchange Commission, and the inspector general for the Department of Housing and Urban Development.

The bill also would establish a new "financial markets commission."