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IA HSB125

SB

Status

Introduced

2/5/2025

Primary Sponsor

Commerce

Click for details

Origin

House of Representatives

91st General Assembly

AI Summary

  • Amends Iowa Code section 537.2501 to allow creditors to charge discount points that result in a bona fide reduction of the interest rate or time-price differential on loans secured by land

  • Permits creditors to contract for and receive points agreed upon with borrowers to offer a given interest rate on land-secured debts

  • Exempts licensed or registered mortgage bankers from certain fee restrictions under Code section 535.8 when making consumer loans secured by land, provided total points and fees do not exceed federal limits specified in 12 C.F.R. §1026.43(e)(3)

  • Expands the types of closing costs creditors may charge on land-secured debts beyond existing permitted finance charges, provided fees are bona fide, reasonable, and not intended to circumvent consumer credit protections

Legislative Description

A bill for an act relating to closing costs for a debt secured by an interest in land.(See HF 512.)

Last Action

Committee report approving bill, renumbered as HF 512.

2/20/2025

Committee Referrals

Commerce2/5/2025

Full Bill Text

No bill text available