President Obama announced his first veto on Thursday. He will not sign the "Interstate Recognition of Notarizations Act of 2010." In case you haven't been following the progress of this obscure bill, its main purpose is to remove impediments to interstate commerce by requiring states and federal courts to accept notarizations by notary publics from any state. Currently many states only recognize notarizations by notary publics who are residents of the state in question.
In thousands upon thousands of cases, executives at mortgage servicers were "robo-signing" foreclosure documents without actually reviewing the paperwork. Those documents were then shipped off to notaries who simply took it on faith that the facts attested to by the documentation were correct. Critics of the bill believe that, behind the scenes, banks and mortgage lenders pressured their allies in the Senate to pass the notarization bill in the hope that it might provide some ex post facto protection for them from the avalanche of law suits that is about to pound the mortgage industry.
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