The Washington Post reported that President Obama will not sign the two-page bill. Instead of letting it expire without his signature, the president is choosing to use a pocket veto to void the legislation. The bill, known as the Interstate Recognition of Notarization Act, had received backing from many top-level democrats including House Speaker Nancy Pelosi.
CNN reported earlier this year that one of the biggest problems with foreclosure is that delinquent home payments are capable of lowering credit scores by 85-160 points, impacting the debt levels of many Americans.
“We believe it is necessary to have further deliberations about the intended and unintended impact of this bill on consumer protections, including those for mortgages,” White House Communications Director Dan Pfeiffer said on the White House blog.
The Post reports the decision to was elicited by consumer protection advocates who believe the law would make it easier for lenders to evict homeowners.
Obama had previously labeled foreclosure as one of the biggest obstacles to the economy. Foreclosure numbers reached a record setting level in 2009.