The blogger's complaints seem to boil down to:

1) The legislation is in English
2) The legislation is long
3) The legislation amends current law

Seems to me that *any* important legislation has these "flaws," including laws that have had very positive consequences (i.e., McCain-Feingold). Thankfully, other websites actually parse and interpret the legislation rather than whine about its length.

Two reasons. First, it's a collective action problem: if all companies but one were digitizing records in a common format, then the last company would indeed jump on board without government prodding. But it might be inefficient to be the first-mover.

Second, in this economy, businesses are unwilling to post short-term losses for long-term gains because their margins are so thin right now. And even if they wanted to make that trade-off, banks are hoarding their money and might not make the loan.

You're off by an entire order of magnitude

2: "The number of households in foreclosure increased 79 percent in 2007, with about one of every 100 U.S. households at some stage of the foreclosure process, according to the latest numbers from data aggregator RealtyTrac." Not sure if all of these people are going to "lose their homes", but it does appear that millions is the correct magnitude.

2a: link?