Did Congress try to Legalize Foreclosure Fraud?

By Greg Hunter’s USAWatchdog.com 

A bill that will make it more difficult to challenge improper foreclosure is going to be Vetoed by President Obama according to a Wall Street Journal story.  The bill quietly slipped through the Senate last week with a unanimous vote. (The House passed the bill in April.)  There was no public debate.  No one spoke up for the people fraudulently foreclosed on by big banks.  The bill got through because of a special Senatorial procedure.  Both Democratic and Republican leaders thought it was a good idea to make it harder for the average homeowner to fight the banks in foreclosure.  The  bill is called HR3808, or the Interstate Recognition of Notarizations Act of 2009.   It would “require any Federal or State court to recognize any notarization made by a notary public licensed by a State other than the State where the court is located . . .” If this became law, fraudulent and forged loan documents (proving the banks have the right to foreclose on a home) would have been much harder to challenge in court.  (Click here to see the complete HR3808,)

Here’s what the Wall Street Journal story said about this Veto, “The move marks the Obama administration’s most direct intervention so far into a growing debacle tied to how banks foreclose on homes, and the first effective veto of Mr. Obama’s presidency. The veto could make it more difficult for banks to complete paperwork and speed the foreclosure process, and could give homeowners more time to rework loans.  Several of the country’s largest banks, including Bank of America Corp., J.P. Morgan Chase & Co. and Ally Bank, have moved in recent weeks to halt thousands of foreclosures in 23 states amid revelations that the banking industry had used “robo-signers,” people who sign hundreds of documents a day without reviewing their contents.”  (Click here for the complete WSJ story.) 

The folks at Zerohedge.com were a little more acerbic about the effect of HR3808.  Writer Tyler Durden summed it up as a “get out of jail card.”  Durden wrote yesterday, “. . . the legislation, if enacted, could protect bank and mortgage processors from liability for false or improperly prepared documents. In other words, with one simple signature Obama has the capacity to prevent tens of billions in damages to banks from legal fees, MBS deficiency claims, unwound sales, and to formally make what started this whole mess: Court Fraud perpetrated by banks, a legal act, and to finally trample over the constitution.”  (Click here for the complete Zerohedge.com story.) 

This is probably one of the many reasons why the President is using his Veto power, but that doesn’t make this bill (and its timing) any less an outrage!  The members of the House and Senate who voted for it betrayed the people to help crooked bankers.  In my mind, what Congress did borders on treason.   The President is doing the right thing in Vetoing the bill.  It is also the smart political move before the mid-term elections.   Voters would have been even more outraged than they already are if this bill helped the banks commit foreclosure fraud.

I really do not know what Congress was thinking when they sent this to the President.  It would not have  magically given the trillions of worthless mortgage backed securities value again.  This bill would also  not have stopped the ongoing financial calamity.  It just exposed the true master of our Congress—the banks.  Senator Dick Durbin said it best last year on a local Chicago radio station in his home state of Illinois.  He blurted out, “And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place.”   

I fully support the President’s Veto on HR3808.  As for the money grubbing, two headed monster that is Congress—you sold out your country and you should be ashamed for trying this kind of end run around the courts and Constitution.

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  1. GrannyB

    Not a single incumbent up for reelection should be given the opportunity to “represent” (heavy sarcasm here) their constituents ever again. A special ceremony (think old-fashioned tarring and feathering) to send them out of Washington would perhaps be appropriate!

  2. Darren van doren


    I respect what you are doing and only found you through some of websites to which you refer. Nevertheless, don’t call Congress a two-headed monster. Both the R and the D are one in the same and there is no difference: banksters. I know you see things as many others who have taken the red pill, but that type of slip up can be interpreted as you are not yet done with the left/right paradigm or that you are a wolf in sheep’s clothing.

    • Greg

      Darren and Scat,
      Thank you both for weighing in on this.

  3. Scat

    This just goes to show that the Democrats and the Republicans are just two sides of the same coin. This same old same old thing of “it’s the left” or ” its the right” is B.S. It is meant to divide and conquer……….

  4. John Bernard

    It’s about time some action was taken action the criminal class within the banking industry. These people have gotten wealthier exploiting the stupidity of borrowers. While the morality of not paying your mortgage to exploit the cynical laziness of banksters is not in dispute, the willingness of the banker management class to further ignore their own mistakes is a crime.

    There was no predatory lending. There were con games played by the most admired banks in the nation. At this point it is clear that ethics classes in our academic institutions is not having the desired effect. Capitalism is the most beneficial system for human interaction when left to its own devices. Political interference that weights the transaction in favor of one or the other has landed us in this mess.

    That the Republicans in the Senate went along with this should tell us that the coming elections will mean little if the congressional criminal class, apparently bought and paid for by the financial monsters, are returned to power; from either side.

    • Greg

      I agree. Only Madoff went to jail??? Come on. Both Republicans and Democrats sold out the country to the “criminal class!!”

  5. malcolm

    “Two headed monster,” you are absolute correct!!! Sadly, as a conservative, I feel betrayed by the GOP. The President is bit more principled than I thought for vetoing this egregious bill. Anyone who thinks kicking out the democrats will change the situation is deluding themselves. Nothing will change, who ever is elected to Congress. Big money runs the show.

  6. MarkM

    Hey Greg,

    Unlike the Bush-haters, I recognize that Obama is not an evil person. I know he truly believes in his neo-Marxist redistributionist religion. It is his belief system that I don’t like. His actions to ruin our unique American culture is what I rail against.

    My point is that when Obama does something correct, we should say so. Vetoing this bill is the right thing to do and we should applaud our CnC for this action, when it actually happens.


  7. Diane Carol Mark

    This is shocking news, even though we know the lobbyists are all too prevalent in Congress. Still, it feels so inhumane to reflect on the fact that Congress has passed, or will pass, HR3808 to the Pres. Frankly, my mom and I believe that lobbyists should be banned. How about it?!
    🙂 Diane

    • Greg

      Thank goodness “O” Vetoed it and yes lobbyists should be banned for the good of the country! Thank you.

  8. Chilicooker

    Just wait until after the Mid-Term elections. If the Dems lose the House, (obviously, the Senate is totally compromised since they voted unanimously to protect the criminal bankers),the bill will be re-introduced and Barry will sign it. At that point, he’ll have no reason not to. His veto is simply a delay tactic.
    If the Dems lose the House, you can expect them to aggressively pass legislation to roll-over (seize) your 401K’s and pensions and put those funds into some government program. That’s where the real money is. And they WANT IT!! Several bills are already making the rounds in Congress. Watch what happens with this “lame duck” Congress if they are voted out. Talk about extortion!!!

    By the way, I stated 3 years ago that Barry would be a another Jimmy Carter. Left with another set of circumstances that cannot be fixed, which will lead to a single term. Stay tuned.

    The banks/Wall St. run this country and the politicians, from both political parties AND the White House just do as they are told….just not by the people that elect them.
    Interestingly enough, I hear-tell that there is a lot of discouragement in the White House. According to multiple staffers, Barry, when not on vacation, spends most of his time watching TV. Mostly sports and Fox news. He rarely attends meetings and only makes brief appearances at the ones he does attend and contributes virtually nothing. Right or wrong, the staffers believe they are acting in the best interest of the country, only to find out who is really calling the shots. Expect a lot more resignations in the near future, with an endless supply of knuckleheads eager to take their places.
    With the REAL unemployment (U-6 figures)well over 20% and the REAL debt in the hundreds of trillions, the moo-people need to stop thinking the solution is to switch their vote to the other political party.
    Name one unconstitutional law or one oppressive tax that was repealed by either party once they gained power. I’ll save you looking. NEVER!
    Come January 1, 2011, new tax laws take affect while other tax deductions expire. Most won’t realize it until April when they fill out their tax forms. I hope you all have thousands saved up because thousands is what it’s going to cost you.

    There are many problems and many have dirty hands but it would be difficult to argue that the bankers ruling over this country for the past 100 years is problem number one. Not whatever pretty face we put into the Oval Office or what political party he/she belongs to. The founders warned us about central banks. Turns out they were right. And for those who still don’t get it, the Federal Reserve Bank is NOT a part of the U.S. Government. They are an offshore, private banking cartel with offices in America. They are the cause of every recession, depression, inflation, deflation, tax rate, mortgage rate, deficit and every other financial problem, including the derivative mess that we are now in. And they pay no taxes. The IRS is the “muscle” for their extortion ring.
    Not a single penny of your payroll withholdings goes towards the infrastructure of this country. There are hundreds of other taxes that do that. Every penny stolen from your paycheck goes to an offshore account of the Federal Reserve (Puerto Rico I believe) to pay the interest on the national debt. None of it pays off the debt, just like any loan you pay pays the interest that you “owe” and barely touches the principal. Mortgage = mort gage = death tax. (Latin, I believe.) For most, you’ll die before you ever pay it off.
    Think about that the next time you send a check to the IRS. You’re simply funding the bankers. It has nothing to do with “paying your fair share”, funding our troops or being a good American. Every cent goes right into the pockets of the bankers who have destroyed our economy beyond repair. Pres. Reagan set up a commission in the 1980’s and that was their findings.
    And the Congress voted to give them immunity???? Yet the people continue to vote these people into office???? Every election cycle has a 96% re-election rate on average.

    If you want to know who is doing this to you, look into a mirror.

    For those who want solutions, get us out of the Bretton Woods agreement, repeal NAFTA, CAFTA, GATT, WTO. There will be no recovery without jobs and these agreements have been taking away jobs since inception.
    Resign from the United Nations, repeal the Federal Reserve Act. End our relationship to the World Bank and IMF and restore the finances to the U.S. Treasury, return to a commodity based, lawful money system. And don’t vote for anybody who doesn’t promise to introduce legislation and/or vote to do these things. Institute a recall amendment or legislation to fire any rep who doesn’t abide by the people who elect them. (No more waiting to vote them out of office when their term expires.) Fire them immediately. Then the rest will get the message. Lobby your state Reps to institute a State Bank like North Dakota has…and is doing well thank you very much. Never cast a vote for a millionaire nor a lawyer. Both are different fleas on the same dog. Vote EVERY member of the House and Senate out of office. EVERY SINGLE ONE. PERIOD!!! And just as important, fire their staffs. ALL of them. It’s long overdue to hit the Reset button.
    That means a fresh start from top to bottom. If you don’t think congressional staffs are just as corrupt as the politicians themselves, you really don’t understand how that mess in D.C. continues. We don’t want anyone who “knows how the game is played”. We need a new game. The only way to do that is to replace all the “players”.
    Term limits on Congress and a return to the original 13th Amendment. You don’t want a career politician. If anyone doesn’t run on this platform, you’re wasting your vote, your wasting your money and you’re wasting our time.
    It won’t solve all the problems but it’s a beginning. Change you CAN believe in, if only the general population could awaken and stop playing their game.
    And did I mention GET RID OF THE BANKERS????

    End of rant

    • Greg

      Rant all you want. I am mad as hell too!!

  9. Robert

    Isn’t it amazing how some bills can be processed through the senate with the utmost of ease and with by bi-partisan support and yet others require endless and fractious debate, especially if they are favorable to the people.

    I can’t be anymore disgusted with the state of politics in our country and the lack of sincerity exhibited by most in both parties.

    What’s it going to take to have real choices on the ballot? Choices that aren’t shills for the corporations masqueradings as the peoples candidate complete with a toothy grin and a tale filled with hypocrisy.

    • Greg

      Amazing and sad at the same time. Thanks for the comment.

  10. parasitism


  11. Brian

    How do we find out if OUR congress person voted for the bill?

    • Greg

      Brian and Bean,
      Call your Congressmans office and ask or go to his or her web site. And yes to you Bean.

  12. bean

    Sep 27, 2010: This bill passed in the Senate by Unanimous Consent. A record of each senator’s position was not kept.

    unanimous consent. with no record. right.

  13. RSH


    This link leads to an excellent article written by Alfed Adask on the tie between fractional banking and securitized mortgages. I recommend that anyone who want to get a handle on this complicated issue read this article.



  14. Tom

    I disagree with your assessment of this bill, Greg. The text of the bill in sections 2 and 3 clearly states that the notarizations are to be lawful, and the emphasis should be on that word – lawful. I have a hard time believing that any of the mass-produced “notarizations” would pass that smell test. If all the House and Senate members who signed on to the legislation anticipated that the rotten banks and their bastard lawyer associates were going to resort to the tricks that they have, your position would be unquestionably right. I have a hard time believing that is the case.

    • Greg

      Yes “lawful” just like the mortgage backed securities, credit default swaps, sub prime loans, mortgage applications, real estate appraisals and 60 million homes in MERS with no legal backing. “Good men can disagree.” Thank you for your comment.

      • Tom

        If it is as bad as you seem to think it is – and you may be right – then we’re wasting our time with elections. Guns and bullets are the only things that will get rid of that level of corruption.

  15. George

    Greg, Once again Congress votes its [and its lobbiest] best interest instead of the peoples.

    • Greg

      Yes George, Both parties sold out the country on this on but what else is new? Thanks man!!

  16. Kirby

    Just when I thought I couldn’t get any more pissed off.

    Think 1775. Get some balls and get ready.

  17. nm

    To Chillcooker:

    Are you sure this piece of information below is true? as in, where did you hear it from? I’ve been wondering about all the staff resignations lately, but would never have thought it was because of this!

    Interestingly enough, I hear-tell that there is a lot of discouragement in the White House. According to multiple staffers, Barry, when not on vacation, spends most of his time watching TV. Mostly sports and Fox news.

    In the middle of two wars and a depression, the president is spending time watching sports?

    I voted for Obama, but was ambivalent. I thought his message of hope and change was naive and well crafted for a gullible electorate worn out by Bush’s incompetence. I always felt that Hillary would have made a much better president, but people fell for Obama’s light weight message sort of like the way they fall for that new age fufu silliness. They’re so desperate for an answer, they’re willing to try anything.

    However, I tell many of my American friends that I grew up in Africa and if there’s one thing that experience did for me, it was give me an ability to fundamentally understand the world in very real terms. That’s why Obama’s message never appealed to me. I voted for him because I didn’t like Mccain, but I knew most of what he was saying was a BS.

    That ivory tower esoteric stuff doesn’t work in the real world.

    The real world is poor, violent and difficult. Americans will soon learn this lesson and if Obama doesn’t snap out of his new age nonsense, he will become a one term president. His speeches do not reflect the reality of the world we inhabit.

    • Greg

      Yes, and you had an interesting childhood thank you for sharing your perspective.

  18. David Conrad

    I agree with you and the President on this one. At least Congress is consistently crooked! Yep, I give them an A for consistency.

    • Greg

      Funny Dave. Thanks man!

  19. Ken Boedeker

    As much as I hate the notion of spending any more money on jails, it’s time to send these fraudsters to jail for their (Select any that apply): gross incompetence in a fiduciary role, malfeasance, perjury, fraud, etc etc etc. When the only penalties are monetary and mere fractions of their ill-gotten gains, there is no incentive to clean up the act. If the freedom of all involved, from the robo-signers all the way up the food chain to the policy makers who made the decisions to act so fraudulently, were on the line, they might pay more attention to the law. I understand there are a few vacancies at Gitmo!

    • Greg

      I cannot believe no banker has gone to jail over this criminal fraud and lawlessness. Thank you.

  20. Jackie

    Greg, I came into this fight late. Did this bill get swept into another bill since then? I’m having trouble finding out what happened next…

    • Greg

      I don’t think this was put through. Happy you are here.

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