The Wall Street Journal, New York Times and the Washington Post all have articles on President Obama’s plans to veto a bill that should make it harder for homeowners to stop foreclosures. H.R. 3808, is actually the Interstate Recognition of Notarizations Act of 2010.
The WSJ went so far as to comment that this is the
most direct intervention so far into a growing debacle tied to how banks foreclose on homes.” Regulators “have struggled to formulate a coordinated response to recent mortgage allegations, in part because they worry intervention might destabilize the fragile housing market. (Italics mine)
So we’re going to let all these people lose their homes with bad paperwork from the banks, and that will stabilize the market? What are we working toward here, a larger homeless population?
The Post reported the bill would have made courts accept notarizations from across state lines
but as the lack of a proper paper trail in mortgage documents came to light, the idea of relying on electronic notaries triggered protests from real estate lawyers and consumer advocates.
Hammering the market
Front page of the New York Times: the fallout from the slipshod foreclosure documents across the country is
hammering the market, especially in states where distressed properties are abundant.
And The Washington Post wrote about MERS (Mortgage Electronic Registration Systems) documents being cited in thousands of court filings about questionable foreclosures and also predicts a worsening market.
If courts increasingly begin to nullify the MERS model – different judges have issued differing rulings — this could call into question the legitimacy of millions of mortgages, wreak havoc on the real estate market, spur costly litigation against Wall Street banks and ultimately harm the broader financial system. (Italics mine)