Sleazy Bankers’ Protection Act
Technically, this bill is the Interstate Recognition of Notarizations Act. It was passed by the House last Spring, and after months of inactivity, it zoomed (quietly!) through the Senate in late September, just one day before the Senate started its recess. Who ever suspected the Senate could move with such blinding speed? Sort of like seeing a lame elderly person who’s always hobbling along on a walker, and this person suddenly throws the walker aside and runs the 100-yard dash in 13 seconds.
Why was this bill so urgent?
The Interstate Recognition of Notarizations Act is related to the millions of foreclosures devastating the country. This is the exact kind of volatile emotional issue that usually keeps the Senate gridlocked and paralyzed for months. What was different this time?
One of the few bright spots of the Wall Street meltdown and the housing crisis is the fact that banks are frequently unable to prove that they’re the original lender when a homeowner defaults on his mortgage. And this is the banking industry’s own doing. It’s an unintended consequence of the incredibly intricate labyrinthine financial maneuverings (totally beyond my comprehension I’ll admit) that banks have devised, so they could keep one step ahead of the regulators. Can’t regulate something we don’t understand now, can we?
Trouble is, in this one specific area, slippery banks and realtors got hoisted on their own petard. When a homeowner defaults, sometimes the original loan document has been transferred from one bank to another bank to another. The original bank might have gone under or merged with another bank. Sometimes this scenario has happened multiple times. Which bank owns the loan? Who has the original loan document? Find Waldo.
Can’t get your shirt back from the drycleaner without your receipt; can’t push that lowly parasite out of his home without the proper documentation. And when a bunch of shady operators want to evict NOW, Congress feels their pain. “I ripped off that gullible homeowner fair and square, and now I can’t yank his house out from under him because of some #$%&!#!&%$# technicality?!?! HELP!”
Thankfully, Obama has vetoed the bill. And our illustrious senators have shown us their true colors. (Like we didn’t already know.) Millions of desperate Americans facing bankruptcy and homelessness? [yawn] Thousands of slippery bankers begging to have a technicality removed so they can evict more people, faster — “I’m on it!”