Real estate watchers have heard of news of GMAC and JPMorgan Chase putting a halt on foreclosure proceedings. What they have not heard of is a bill – which has passed the Senate with lightning speed – that will make it harder to nullify improper foreclosure attempts by banks and mortgage processors. The bill, which is only getting media attention now, is already awaiting President Barack Obama’s signature.

The law, named “Interstate Recognition of Notarizations Act”, requires all state and federal courts to recognize as valid notarizations that were made in other states. Notarizations stamped en masse by computers, or electronic notarizations, are also included in this bill.

The bill had been sitting idle in the Senate Judiciary Committee for months but sped through approval and without public awareness on September 27. This made others question the timing of how it was acted upon; even the bill’s main sponsor, Republican Representative Robert Aderholt, was surprised at how it did not ignite any public debate.

Only recently, GMAC and JPMorgan stopped foreclosures in many states as an answer to allegations that a large number of affidavits have been passed without having been personally checked for validity. This anomaly was first made aware through a deposition by Maine lawyer Thomas Cox, who represents homeowners contesting foreclosures. And for Cox, the bill will make challenging the validity of documents more difficult and costly – after all, questions about improper notarizations figured tremendously in existing cases that challenged validity of court documents.

Indeed, the “Interstate Recognition of Notarizations Act” will do nothing to help the homeowners’ plea to save their homes from foreclosures. In fact, the bill will mainly be in favor of mortgage processors and banks, which will be given protection from liability for improper and false documents.

“It is troubling to me and curious that it passed so quietly,” Cox said.