After all the talk about helping homeowners weather the foreclosure crisis and the recent uproar in the media over banks improperly taking away people’s homes, the Democratic-controlled Congress quietly, and without any debate, passed legislation making it easier for mortgage companies to foreclose on properties.

 

But President Barack Obama wanted nothing to do with the bill and through a spokesman said he would not sign it.

 

The Interstate Recognition of Notarizations Act of 2009 would have required courts to accept out-of-state notarizations, including those done electronically, which consumer advocates said would make it harder for homeowners to challenge the authenticity of foreclosure proceedings. The proposed change in law came at a time when GMAC, JPMorgan and Bank of America have received bad press for using improper affidavits and other filings to evict people from their homes.

 

The legislation also could have ended up giving banks and mortgage processors immunity for false or improperly prepared documents.

 

The bill’s main sponsor is Rep. Robert Aderholt (R-Alabama).

-Noel Brinkerhoff

 

Bank Foreclosure Cover Seen in Bill at Obama's Desk (by Scot J. Paltrow, Reuters)

H.R. 3808: Interstate Recognition of Notarizations Act of 2009 (Govtrack.us)

Obama Won't Sign Bill That Would Affect Foreclosure Proceedings (by Jia Lynn Yang and Ariana Eunjung Cha, Washington Post)