I was planning to write a post about how we should implore President Obama to veto H.R. 3808, which would have made it more difficult for homeowners to challenge fraudulent foreclosures. Well, the President beat me to the punch:
Today, the White House announced that President Obama will not sign H.R. 3808, the Interstate Recognition of Notarizations Act of 2010, and will return the bill to the House of Representatives.
As the President has made clear, consumer financial protections are incredibly important, and he has made this one of his top priorities, including signing into law the strongest consumer protections in history in the Wall Street Reform and Consumer Protection Act. That is why we need to think through the intended and unintended consequences of this bill on consumer protections, especially in light of the recent developments with mortgage processors.
The bill would have “require[d] courts to accept as valid document notarizations made out of state, making it harder to challenge the authenticity of foreclosure and other legal documents. ”
No doubt President Obama was influenced by the recent news that 23 states have halted all foreclosure proceedings pending thorough investigations. While the sponsors of this bill may have had good intentions, the President made the right decision in sending the bill back to the House of Representatives. At a time when the number of home foreclosures is soaring and American families are hurting, the last thing they need is a law that would have made it more difficult to stay in their homes.