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 mort-
gage 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; 
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•HRES 500 IH 
Whereas digital signatures applied to mortgages have statu-
tory basis in the Electronic Signatures in Global and Na-
tional 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 de-
mands 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; 
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•HRES 500 IH 
Whereas nonuniform State rules create a barrier and uncer-
tainty for investors considering purchasing digital mort-
gages; 
Whereas State and local governments should focus on harmo-
nization, 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 al-
ready allow for the use of electronic signatures on mort-
gage documents insured or guaranteed by their pro-
grams, and the Government National Mortgage Associa-
tion (Ginnie Mae) is in the process of permitting the use 
of eNotes for loans included in securities it guarantees: 
Now, therefore, be it 
Resolved, That the House of Representatives— 
(1) supports the adoption by States of con-
sistent standards for the digitization of the mortgage 
process; and 
(2) urges the Secretary of Housing and Urban 
Development to continue to support Ginnie Mae’s ef-
fort to accept eNotes and electronically signed mort-
gage documents. 
Æ 
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