Text: HF00523 Text: HF00525 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 535A.13 TITLE GUARANTY OR
1 2 INSURANCE DISCLOSURE.
1 3 A financial institution shall disclose in writing to the
1 4 mortgage loan applicant all of the following:
1 5 1. Whether a title guaranty certificate or title insurance
1 6 will be purchased with respect to the mortgage loan.
1 7 2. If a title guaranty certificate or title insurance is
1 8 being purchased, a statement that such certificate or
1 9 insurance is for the protection of the financial institution.
1 10 3. The address and telephone number of the title guaranty
1 11 division within the Iowa finance authority and a statement
1 12 that the mortgage loan applicant may be able to purchase
1 13 similar coverage from the division.
1 14 Sec. 2. APPLICABILITY. This Act is applicable to all
1 15 mortgage loan applications submitted to a financial
1 16 institution on or after the effective date of this Act.
1 17 EXPLANATION
1 18 This bill requires a financial institution to disclose in
1 19 writing to a mortgage loan applicant whether a title guaranty
1 20 certificate or title insurance will be purchased with respect
1 21 to the mortgage loan. If a title guaranty certificate or
1 22 title insurance is being purchased, the financial institution
1 23 must also include in the disclosure a statement that such
1 24 certificate or insurance is for the protection of the lender,
1 25 and the address and telephone number of the title guaranty
1 26 division within the Iowa finance authority and a statement
1 27 that the mortgage loan applicant may be able to purchase
1 28 similar coverage from the division.
1 29 Code section 535A.1 defines "financial institution" to mean
1 30 a bank, credit union, insurance company, mortgage banking
1 31 company or savings and loan association, industrial loan
1 32 company, or like institution or any other person who makes
1 33 mortgage loans and which operates or has a place of business
1 34 in this state. "Financial institution" does not include an
1 35 individual who makes less than five mortgage loans a year.
2 1 LSB 1395HH 78
2 2 mj/cf/24.1
Text: HF00523 Text: HF00525 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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