Obama vetoes bill easing foreclosures

WASHINGTON, Oct. 8 (UPI) -- U.S. President Barack Obama Friday vetoed a bill that would have made it easier for banks to foreclose properties across state lines.

Obama said the Interstate Recognition of Notarizations Act of 2010 would have a "possible unintended impact" on consumer protections. He called on Congress to revise the measure before sending it back to him.

"The authors of this bill no doubt had the best intentions in mind when trying to remove impediments to interstate commerce," Obama said in his memo to Congress. "My administration will work with them and other leaders in Congress to explore the best ways to achieve this goal going forward.

"To leave no doubt that the bill is being vetoed, in addition to withholding my signature, I am returning H.R. 3808 to the clerk of the House of Representatives, along with this Memorandum of Disapproval."

Coinciding with Obama's action, Bank of America Friday expanded its freeze on foreclosures in 23 states to cover the remaining 27 because of problems with paperwork. Several other banks have also halted at least some foreclosures.

Hundreds of thousands of people have defaulted on their mortgages as a result of the recession, with many of the properties going into foreclosure. However, judges have halted proceedings in numerous cases because of errors on the foreclosure documents. In one Florida case, Bank of America foreclosed on a homeowner who had paid cash for the property in December.

The bill was proposed by Rep. Robert Aderholt, R-Ala., as a way to speed interstate business transactions.

"Contrary to some blogs and reports, there is absolutely no connection whatsoever between Congressman Aderholt's legislation and the recent foreclosure documentation problems," a spokesman for Aderholt said Thursday.