ABC News has learned that President Obama will not sign – or “pocket veto” -- a bill that sailed through Congress that consumer groups warn would make it easier for banks to foreclose on homeowners.
The purpose of the “Interstate Recognition of Notarizations (IRON) Act -- written by Rep. Robert Aderholt, R-Al., and currently sitting on the president’s proverbial desk -- is to streamline the recognition of notarizations across state lines. Aderholt said in a statement that the legislation “will help businesses around the nation by eliminating the confusion which arises when states refuse to acknowledge the integrity of documents notarized out-of-state. This issue continues to be a problem for businesses and individuals who engage in business across state lines.”
The bill passed the House in April and sailed through the Senate without debate at the end of September, as Congress adjourned for the Fall recess.
But consumer groups and some state officials noted that the legislation could have the unintended consequence of exacerbating an ugly trend of unfair home foreclosures. By requiring the acceptance of out-of-state notarizations, the bill could make it more difficult for homeowners to challenge improper foreclosure attempts.
On Thursday morning, White House officials held meetings to review the legislation, with the president ultimately deciding that however well-intentioned the bill may have been, it might create too much potential for harm to homeowners at a time of economic tough times, and in the wake of a major controversy over waves of questionable foreclosures by Bank of America, JPMorgan and other big lenders.
Not that Obama had much of a choice. Signing this bill would have been a total disaster across the board for him. By kicking it back to Congress in the lame duck session he can effectively force a mulligan on the legislation. He can't really attack Republicans on this because it was a unanimous consent maneuver on the part of the Senate, so he's just washing his hands of it and slapping "return to sender" on it.
That still leaves however the foreclosure mess smoking on the White House's doorstep. Better than stepping in it, I guess.
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7 comments:
Thank God.
Let the GOP try to explain to the Tea Party why they want this in the next Congress. That'll be tough even for their spin doctors.
In the meantime, we've got to find a way to make the Senatorial Donks answer for this bullshit.
True. But at this point, I'm much more worried about this foreclosure nuke being of such magnitude that the banks get bailed out again with TARP II: Economic Boogaloo.
First, ROFL.
Second, I absolutely see this having the potential to cause enough economic mayhem that it'll send the big banks reeling again. I just can't see where TARP II would come from, politically speaking. If you've got a hunch, I'd really love to hear you game it out.
Same way TARP I came about. Timmy goes up to Capitol Hill and says "We have no choice, if we don't the American banking system goes under and takes our economy and millions of jobs with it."
Worked for Hank Paulson.
Sure, that's exactly what Timmy would do. But would the GOP have the balls to smash its "new" coalition? The Tea Party would abso-fucking-lutely riot. That's the question rolling around in my skull right now. What would a 112th Congress GOP with a majority be more afraid of, economic calamity or their Tea Party Frankenstein's Monster?
In every instance when it really mattered, the GOP has sided with big business over Tea Party populism and framed it as "corporations good, dirty effing hippies bad."
I expect it will happen again. Remember, the bill went to Obama's desk with no debate and by unanimous consent. Congress, especially the Senate, knows exactly how to get things going when their rulers command, and the command on this bill came from very, very high up indeed.
It was only because this bill got noticed that Obama didn't sign it.
Well, I can't argue with any particular point you've made.
Oh well, the scotch I sip while the GOP tries to explain this to the Tea Party will taste particularly good. Bitter irony goes very well with Glenmorangie.
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