U.S. Senate nears vote on financial fraud bill

WASHINGTON, April 27 (Reuters) - A bill to extend federal fraud laws to mortgage lending businesses and give more money to federal agencies to pursue scam artists advanced toward a final vote in the U.S. Senate with a vote on Monday to cut off debate.

The Senate voted 84-4 to stop a week of discussions and move to pass the bill, which would also create an independent commission to investigate the cause of the worst U.S. economic crisis in decades. A vote on passage is expected on Tuesday.

The legislation is designed to reinvigorate the battle against white-collar crime, which was reduced after the Sept. 11, 2001 attacks on the United States that diverted federal funds to national security.

Similar legislation is pending in the U.S. House of Representatives. Both chambers must agree on a final version before it can be signed into law.

President Barack Obama supports the legislation and is expected to sign it.

In addition to expanding the reach of federal fraud laws, the Senate bill would also make it a crime to willfully overvalue a property in order to convince a lender to issue a mortgage or refinance one.

The bill would give the Justice Department $165 million a year for 2010 and 2011 to hire investigators and prosecutors. The bill would also give extra funds to the Securities and Exchange Commission, the U.S. Postal Inspection Service and other agencies to root out fraud. (Reporting by Diane Bartz; Editing by Tim Dobbyn)