Posted on 10/07/2010 2:47:16 PM PDT by jerry557
President Barack Obama has rejected a bill that the White House fears could worsen the mounting problems caused by flawed or misleading documents used by banks in home foreclosures.
White House press secretary Robert Gibbs said Thursday that Obama is sending a newly passed bill back to Congress to be fixed because the current version has "unintended consequences on consumer protections."
The bill would loosen the process for providing a notary's seal to documents and allow them to be done electronically. It would also foreclosure and other documents to be accepted among multiple states. Consumer advocates and state officials had argued the bill would make it difficult for homeowners to challenge foreclosure documents prepared in other states.
O. Max Gardner, a consumer lawyer in Shelby, N.C., said the bill would have made the problems with foreclosure documents worse. That's because mortgage companies would have been able to mass-produce documents and affix a digital version of a notary's seal rather than one on paper.
"They could process more foreclosure cases with improper and invalid documents and make it more difficult for consumers to try to fight," he said.
Obama used a rare "pocket veto" — a tactic for killing a bill that can be used only when Congress is not in session. It essentially takes effect when the president fails to sign a bill within 10 days. Obama has yet to issue a traditional veto during his presidency; he has used a pocket veto once before, in December 2009, to address what amounted to a technicality on a defense spending bill.
A furor has been growing as mounting evidence has surfaced that mortgage lenders have been evicting homeowners using flawed court papers. State and federal officials have been ramping up pressure on the mortgage industry over concerns about potential legal violations.
(Excerpt) Read more at news.yahoo.com ...
Well, color me surprised. This is the first good thing Obama has done since he got into office.
More free houses for deadbeats. They are going to make foreclosing impossible. Why should I make my payment anymore? I feel like such a dupe.
Yup, but nothing good will come of anything until/unless Fannie/Freddie and now Sallie are taken off the government teat.
Phony Faulty Foreclosure Papers ping
This is the type of legislation and skulduggery you find in banana republics.
Totally, totally wrong.
Here is the basics.
The same banks that were fast and lose for greed, that did their part to inflame the mortgage market, and pass on junk bundles of mortgages to others, are now doing junk to foreclose.
And, why shouldn’t they?
There’s nothing wrong with legal, contractual, fast and efficient foreclose.
Just be legal.
Do you want two sheriffs deputies and a moving crew to move you along with the documents that were notarized or passed by a lawyer that is farming them out to Indians electronically? Where he, the lawyer, has ‘no skin in the game’, except picking up a check and reducing his costs?
I am also surprised. This bill was “passed” without a committee vote, and no recording of aye/nays. I thought it was a shoo-in to pass especially since the bill is telling states they do not have the right to enforce state law.
With all these investigations into the foreclosure process, you sorta have to wonder if it isn’t a sign of election-year desperation on the part of Democrats... along with a reaction by the president to limit the damage that’s already been done by government tinkering with the economy.
Yep because the jackasss got caught
“Well, color me surprised. This is the first good thing Obama has done since he got into office.”
He must be up to something nefarious.
I am not hearing cases where people that are up to date on their payments are being foreclosed on in any statistically relevant numbers. This is only a way to keep those behind in their payments in their houses longer for free. I am being royally screwed by making my payments.
‘I feel like such a dupe’...me too; managing your affairs so as to minimize debt and have an emergency cushion is obviously for losers these days. Fortunately, so far, our neighborhood is stable and folks are paying their bills. Other subdivisions in the county are not in this situation. There folks like us are surrounded by deadbeats living in ‘their’ homes for free with no incentive to maintain them or even keep up the lawn. We get to subsidize them, and, at the same time, see our investment in our neighborhood decline further.
Oh, and those who think this concerns ONLY foreclosures had better think again. If you have a mortgage and it has been securiticized and you want to sell....good luck.
This is actually very important. The banksters, had they been successful would have destroyed the entire notary system. Wouldn’t that be convenient?
That should be ...”and he will sign it.”:
Foreclosure is STATE business. It is not done in FEDERAL COURTS. GTH Washington. GTH!
The selling difficulty point you make is a good one. However, I still contend that at the root of all this is a desire to stop foreclosures as much as possible so that deadbeat democrats can stay for free in a house they don’t pay for.
Wait a second. The Senate is still in session, even if only a couple of Senators drop by every two or three days to bang the gavel. They specifically didn't go into recess. Obama shouldn't be able to legally do a pocket veto and if he doesn't sign or veto it the bill should become law.
Exactly. It’s not about whether banks can foreclose. It says that state judges MUST accept certification from other states even if they are bogus.
I agree that if you stop all foreclosures it would be a disaster, too. But this would be an even worse disaster. Someone could get a bogus certification from another state to foreclose on your house, and the judge wouldn’t even be allowed to consider as evidence the fact that you didn’t even have a mortgage on your house.
That wasn’t accidental. It was a really, really crooked move. I suspect that Obama was behind it, but realized that he had been caught with his hand in the cookie jar, and didn’t want to sign it right before the election.
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