Obama nixes foreclosure bill

The Daily Record Newswire

A bill that would have made it harder for homeowners to fight foreclosures in court was rejected by President Barack Obama in a pocket veto.

The Interstate Recognition of Notarizations Act, H.R. 3808, would have required courts hearing foreclosure matters to accept out-of-state document notarizations - including controversial electronic notarizations critics say are misused by banks in order to rush foreclosure cases to judgment.

The bill marks only the second time Obama has used a pocket veto since taking office.

''Our concern is the unintended consequences on consumer protections,'' White House press secretary Robert Gibbs said during a daily press briefing. ''So the president is exercising a pocket veto to send that bill back to Congress to iron out some of those unintended consequences.''

The author of the bill, Rep. Robert Aderholt, R-Ala., said he was disappointed in the president's decision because the legislation was designed to help consumers, not hurt them.

''It would help court reporters, attorneys, business owners and consumers in general,'' Aderholt said in a statement after the veto. ''The bill expressly requires lawful notarizations, and in no way validates improper notarizations. Enforcement of legal notarizations is a state responsibility and I fully support each state attorney general vigorously prosecuting all notarization fraud.''

Published: Thu, Oct 14, 2010


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