According to the latest developments, President Obama will pocket-veto a piece of legislation that critics say would make it easier for banks to process foreclosures and make it more difficult for borrowers to challenge foreclosure documentation. The bill in question, HR 3808, passed the Senate on September 27th by unanimous consent. The House passed the bill by voice vote in April. The bill would require state and federal courts to “recognize any notarization made by a notary public” licensed in any state, including electronic signatures. The motivation behind the bill was businesses’ argument that it is too easy for people to challenge notarized documents in court when notaries were licensed in different states. Ohio Secretary of State Jennifer Brunner stated on October 5th that if the bill became law it would make it harder for consumers to challenge foreclosures.
On October 6th, Ohio’s Attorney General Richard Cordray filed a lawsuit against GMAC Mortgage and its parent, Ally Financial Inc., accusing the loan servicer and its agents of filing fraudulent affidavits in an attempt to mislead courts in hundreds of Ohio foreclosures. Cordray is seeking the court to grant a preliminary and permanent injunction preventing GMAC and Ally from proceeding to foreclose in any pending Ohio case. Additionally, the lawsuit is asking for civil penalties of up to $25,000 for every violation and for consumer restitution.
Joshua D. Carlson, Esq.