Obama vetoes foreclosure bill as anger grows

I’m really impressed that the president would veto this given his previous track record. Bravo Mr. President, bravo.

By Jia Lynn Yang and Ariana Eunjung Cha
Washington Post Staff Writers
Friday, October 8, 2010

President Obama stepped into a growing political furor over the nation’s troubled foreclosure system Thursday by vetoing a little-known bill that critics say would have made it easier to evict homeowners who missed their payments.

The decision to block the measure, which Congress passed without debate, came as members of the president’s own party have urged the administration and federal regulators to more actively address the crisis over flawed foreclosures.

Meanwhile, attorneys general from about 40 states vowed to band together to investigate reports of fraudulent documents and of banks seizing property without having clear ownership of the mortgages.

At least 10 states – with Iowa and Delaware being the latest – are seeking to expand a voluntary freeze on foreclosures by some of the nation’s largest mortgage lenders to include more companies and more regions. And calls have increased for a nationwide moratorium – a move that could deal a blow to the earnings of big banks and grind to a halt the sale of millions of properties in foreclosure.

In the middle of a heated election season, a growing number of politicians have been eager to weigh in on the matter – and are taking pains to rebuke the financial institutions at the core of the controversy.

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