IV 

116TH CONGRESS 

1ST SESSION H. RES. 500 

Recognizing the benefits of digitization of the mortgage process. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 17, 2019 

Mr. DUFFY submitted the following resolution; which was referred to the 

Committee on Financial Services 

RESOLUTION 

Recognizing the benefits of digitization of the mortgage 

process. 

Whereas online, mobile, and other responsible technological 

advances can be leveraged with the use of remote data 

management and alternative sources of data to increase 

availability of safe products to underserved, underbanked, 

and unbanked communities; 

Whereas use of electronically signed documents in the mortgage process can reduce length of closing time, reduce 

hours of costly labor-intensive processes, are cost effective 

to store and transmit, and offer greater protection 

against unauthorized tampering, alteration, or loss; 

Whereas digitization and automated valuation models may 

lower costs and expedite closing times for consumers; 


kjohnson on DSK79L0C42 with BILLS
2 

•HRES 500 IH 

Whereas digital signatures applied to mortgages have statutory basis in the Electronic Signatures in Global and National Commerce Act (ESIGN; Public Law 106–229), 

which recognized the legal validity of signatures and 

records executed with an electronic stamp; 

Whereas remote online notarization and the use of audio and 

visual technology and electronic methods can meet demands to facilitate a modern closing process for home 

mortgage closings and enhance the consumer experience; 

Whereas an eNote is an electronic version of the negotiable 

promissory note that is digitally signed and electronically 

transmitted and stored; 

Whereas online products provide consumers with anonymity 

to prevent discrimination against protected classes in the 

mortgage process; 

Whereas the digital mortgage process provides consumers 

with control of and access to their own data, information, 

and finances; 

Whereas single source validation allows lenders to verify a 

consumer’s assets and employment to streamline a more 

accurate and secure closing process; 

Whereas continued enhancements in digital identity 

verification using multi-factor authentication to validate 

the consumer protects their identity and data; 

Whereas the digitization of property data has helped to 

streamline and automate more accurate valuations; 

Whereas certain markets may continue to necessitate physical 

appraisals for different types of construction, lot sizes, 

amenities, age, and other factors; 


kjohnson on DSK79L0C42 with BILLS
3 

•HRES 500 IH 

Whereas nonuniform State rules create a barrier and uncertainty for investors considering purchasing digital mortgages; 

Whereas State and local governments should focus on harmonization, including adoption of model laws that could be 

uniformly adopted by States; and 

Whereas the Federal Housing Administration, Fannie Mae, 

Freddie Mac, and the Department of Veterans Affairs already allow for the use of electronic signatures on mortgage documents insured or guaranteed by their programs, and the Government National Mortgage Association (Ginnie Mae) is in the process of permitting the use 

of eNotes for loans included in securities it guarantees: 

Now, therefore, be it 

1 Resolved, That the House of Representatives— 

2 (1) supports the adoption by States of con3 sistent standards for the digitization of the mortgage 

4 process; and 

5 (2) urges the Secretary of Housing and Urban 

6 Development to continue to support Ginnie Mae’s ef7 fort to accept eNotes and electronically signed mort8 gage documents. 

Æ 


kjohnson on DSK79L0C42 with BILLS