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Bill > HF512
IA HF512
IA HF512A bill for an act relating to closing costs for a debt secured by an interest in land.(Formerly HSB 125.)
summary
Introduced
02/20/2025
02/20/2025
In Committee
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill relates to closing costs for a debt secured by an interest in land. Under the bill, in addition to permitted finance charges, with respect to a debt secured by an interest in land, a creditor may contract for and receive closing costs, provided they are bona fide, reasonable in amount, and not for the purpose of circumvention or evasion of Code chapter 537, including fees or charges listed in Code section 535.8(4)(a) and (b), except if a creditor that is a mortgage banker makes a consumer loan secured by an interest in land in which the points and fees the borrower is charged by all lenders in connection with the loan do not exceed the amounts specified in 12 C.F.R. §1026.43(e)(3), the consumer loan shall not be subject to Code section 535.8(4)(a) or Code section 535.8(5). A creditor may also contract for and receive discount points for the purpose of reducing, and which result in a reduction of, the interest rate or time-price differential applicable to the loan, and points agreed upon by the creditor and borrower to offer a given interest rate.
AI Summary
This bill modifies regulations related to closing costs and fees for consumer loans secured by land in Iowa. It allows creditors, specifically mortgage bankers, to contract for and receive certain closing costs under specific conditions. If a mortgage banker provides a consumer loan where the total points and fees charged by all lenders do not exceed the amounts specified in a federal regulation (12 C.F.R. §1026.43(e)(3)), the loan will be exempt from certain state code restrictions on fees. The bill also explicitly permits creditors to charge discount points that genuinely reduce the loan's interest rate and points mutually agreed upon by the creditor and borrower to establish a specific interest rate. These provisions aim to provide more flexibility for lenders while maintaining protections for borrowers by requiring that the fees be bona fide, reasonable, and not intended to circumvent existing consumer protection regulations in the state's lending laws.
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Commerce (House)
Last Action
Withdrawn. H.J. 985. (on 04/17/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF512 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF512.html |
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