The Department of Justice announced that the U.S.' largest mortgage fraud sweep resulted in "191 civil enforcement actions" and the "recovery of more than $147 million."

Obama's 2011 budget includes $20 million to help the Department of Housing and Urban Development "combat mortgage fraud and predatory lending practices."

Obama signed the Fraud Enforcement and Recovery Act, which allocates $450 million to fight the kinds of fraud that the administration says created the recent housing crisis, "from predatory lending on Main Street to the manipulation on Wall Street." The law extends federal jurisdiction to mortgage loan companies that were not previously subject to regulation.

The federal government and the states will work together to stop mortgage scams, the administration announced. "If you discriminate against borrowers or prey on vulnerable homeowners with fraudulent mortgage schemes, we will find you and we will punish you," said Attorney General Eric Holder.

FTC Chairman Jon Leibowitz says he will tap into authorities provided in the FY09 omnibus spending bill (subscription) to penalize mortgage scammers and enforce the Federal Reserve's mortgage rules, which will take effect later this year.

Obama's FY 2010 budget outline provides funds for HUD to crack down on mortgage fraud and predatory lending, as well as improve "fair housing enforcement." Although the outline does not address the penalties for mortgage fraud, it says good practices include "proper disclosure of mortgage terms and permissible business practices and charges."

Speaking in Phoenix, President Obama unveiled his $75 billion Homeowner Affordability and Stability Plan, which he said won't "help dishonest lenders who acted irresponsibility."