U.S. legislators in one chamber approved a bill that will provide funding for technology at the U.S. Department of Housing and Urban Development. The bill also includes funding for the prevention of mortgage fraud.
The U.S. House of Representatives passed the conference report for H.R. 3288, the Consolidated Appropriations Act, the Mortgage Bankers Association reported today.
The legislation includes $80 million for technology upgrades at HUD and the Federal Housing Administration.
“Given the growing number of loans that FHA is being asked to insure, this increased funding is critical to give FHA the resources it needs to effectively handle its growing market share,” MBA Chairman Robert E. Story said in the statement. “FHA’s share of loan originations has increased nearly tenfold over the last couple years, which is why it is important to enable the agency to improve its technology and improve its risk management.”
The bill also includes $20 million for fraud detection programs. Funding is also included for mortgage fraud prosecution by the U.S. Department of Justice.
“Fraud perpetrated against mortgage lenders costs the industry billions of dollars every year — costs that lenders are forced to pass on to potential borrowers,” Story added. “It is important that FHA be given the resources to protect the integrity of the insurance programs.”
The conference report now faces Senate approval.
