Obama vetoes bill to speed foreclosures

WASHINGTON (CNNMoney.com) -- President Obama won't sign a bill that could have made it easier for courts to clear foreclosures, the White House said Thursday.

The bill would have required federal and state courts to recognize documents that were notarized in other states.



Both congressional chambers approved the legislation by voice votes, a move used for noncontroversial bills. The House passed it in April, and the
Senate passed it Sept. 27.

However, housing advocates and attorneys warned that the bill might have made it more difficult to challenge the quality of foreclosure records at a time when reports of
improperly foreclosed homes are increasing.

"We have heard from officials around the country about the concern that they have about the possible unintended consequences of this legislation -- certainly in
light of what we are seeing in the mortgage processing," White House
spokesman Robert Gibbs said.