Recognizing the benefits of digitization of the mortgage process.

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; VerDate Sep 11 2014 02:13 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6300 E:\BILLS\HR500.IH HR500 kjohnson on DSK79L0C42 with BILLS 2 •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; VerDate Sep 11 2014 02:13 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6300 E:\BILLS\HR500.IH HR500 kjohnson on DSK79L0C42 with BILLS 3 •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 (1) supports the adoption by States of con- 2 sistent standards for the digitization of the mortgage 3 process; and 4 (2) urges the Secretary of Housing and Urban 5 Development to continue to support Ginnie Mae’s ef- 6 fort to accept eNotes and electronically signed mort- 7 gage documents. 8 Æ VerDate Sep 11 2014 02:13 Jul 18, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\HR500.IH HR500 kjohnson on DSK79L0C42 with BILLS