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)]
<DOC>
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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Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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