Bill > SF398

This bill modifies Iowa's consumer loan regulations by adding provisions related to closing costs for loans secured by land. Specifically, the bill allows mortgage bankers to charge discount points (fees paid to lower the interest rate) and other points that are agreed upon by the lender and consumer, as long as the total points and fees do not exceed amounts specified in federal regulations (12 C.F.R. §1026.43). For consumer loans secured by land where a licensed or registered mortgage banker originates the loan with an annual percentage rate and fees within specified federal limits, the loan will be exempt from certain existing fee limitations in Iowa Code sections 535.8. This means mortgage lenders will have more flexibility in structuring loan costs while still maintaining consumer protections by adhering to federal guidelines. The bill is set to take effect on July 1, 2025, and appears designed to align state lending regulations more closely with federal standards and potentially make home loans more accessible by reducing regulatory constraints on lenders.

Commerce (Senate)

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF398