Interstate Notarization Bill May Save Banks from Sloppy Foreclosures

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The recent foreclosure delays caused by poor documentation and inadequate review of foreclosures might not benefit the homeowners much after all. Banks may have a way out if the President signs a new bill sitting on his desk that requires federal and state banks to recognize notaries licensed in any state. John Carney of NetNet explains:

The fear is that the bill will allow banks to "forum shop," pushing through notarized foreclosure statements from states with lose standards or courts unfriendly to challenges to notarized foreclosure statements. Proponents of the bill would probably argue that it will help avert a nation-wide slowdown to the foreclosure process that could serve simply to delay a housing recovery by leaving more houses in mortgage limbo.

Read the full story on NetNet at CNBC. 

Update: President Obama will veto the bill.

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Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.
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