IA SF398

Amends Iowa Code Section 537.2501 to exclude discount points from closing cost limitations when the points result in a bona fide reduction of the interest rate on land-secured debt

Allows points agreed upon by creditors and consumers to secure a given interest rate, provided total points and fees do not exceed federal limits specified in 12 C.F.R. §1026.43(e)(3)

Exempts consumer loans secured by land from certain state fee limitations (Sections 535.8(4)(a) and 535.8(5)) when originated by licensed or registered mortgage bankers

Requires that the annual percentage rate, points, and fees charged comply with federal qualified mortgage thresholds under 12 C.F.R. §1026.43(e)(2)(vi) and (e)(3) to qualify for the exemption

Effective date: July 1, 2025