OMG! Obama Refuses to Sign Weirdly Rushed Bill That Could Impact Foreclosures
Satan must have ice skated to work this morning because for once, I am impressed with the White House and overjoyed to hear that they are considering not only the immediate impact of a bill but the unintended consequences. Now if only they'd been so thorough with Frankendodd.
President Barack Obama will not sign legislation that could have made it more difficult for homeowners to challenge unjustified foreclosure actions, the White House said on Thursday.
White House communications director Dan Pfeiffer said Obama was sending the bill back to the House of Representatives for further discussion of how it would affect the foreclosure crisis, which has become a political lightning rod amid media reports that banks acted improperly to evict struggling borrowers.
"We believe it is necessary to have further deliberations about the intended and unintended impact of this bill on consumer protections, including those for mortgages, before this bill can be finalized," Pfeiffer said in a blog posting.
White House spokesman Robert Gibbs said earlier that officials were meeting on the bill, which cruised through the Senate last week with no public debate and could have shielded bank and mortgage processors from liability for foreclosure documents that were prepared improperly.
The bill would have required courts to accept all out-of-state notarizations, including those stamped en masse by computers in a practice that critics say has been improperly used to expedite foreclosure orders.
Awesome. So what's the political motivation behind this? The Senate had some bankers to appease ahead of Election Day while the White House wants to earn the respect of the unwashed masses squatting in homes that aren't theirs?
The good news out of all of this is that those lawyers sitting around waiting for work will have plenty to do in the years ahead unraveling this mess and figuring out to whom each home belongs while the accountants will stay plenty busy figuring out how to continue to put off writing off these homes that should have never been financed in the first place.