Title: Recognizing the benefits of digitization of the mortgage process.
Policy area: Finance and Financial Sector

Summary:
This resolution supports the use of digitization and electronic signatures in the mortgage process.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 500 Introduced in House (IH)]

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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;
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;
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
    Resolved, That the House of Representatives--
            (1) supports the adoption by States of consistent 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 effort to accept eNotes and 
        electronically signed mortgage documents.
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