Serpula (fungus) cover the surface they are growing on (known as the substrate). The hymenophore, or spore-forming surface, generally has a wrinkled appearance. The species grow on, and digest, mainly coniferous wood, causing a process known as brown rot. One species, dry rot ("S. lacrymans"), is a highly destructive agent of houses. Damp structural timber is an ideal substrate for the germination of "Serpula" spores. The fungal hyphae penetrate the wood and release enzymes that break down structural polysaccharides such as cellulose. There may be no external indications that the fungus is present until the rot is far advanced and fruit bodies
Serpula lacrymans of 13805 genes. "S. lacrymans"' genome encodes six annotated polyketide synthases (PKS1-PKS6), 15 nonribosomal peptide synthetases (NPS1-NPS4, NPS7, NPS13-NPS15, NPS17, and NPS18), and two hybrids thereof (NPS6, NPS8, and NPS16). Additionally, the genome encodes for various putative adenylate-forming reductases (NPS5, NPS9-NPS12) (Eastwood et al., 2011). "NPS3" was overexpressed in E. coli and characterized as an atromentin/quinone synthetase that catalyzes the formation of atromentin, similar to GreA; InvA1,2 and 5; and AtrA from Suillus grevillei, Tapinella panuoides, Paxillus involutus, respectively. "NPS3" and its adjacent clustered aminotransferase gene ("AMT1") were also found to be up-regulated during co-incubation with bacteria (Tauber et al.,