House File 2449

                                       HOUSE FILE       
                                       BY  COMMITTEE ON COMMERCE,
                                           REGULATION AND LABOR

                                       (SUCCESSOR TO HSB 608)


    Passed House, Date               Passed Senate,  Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the collection of costs associated with
  2    residential real estate loans.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5625HV 80
  5 da/pj/5

PAG LIN

  1  1    Section 1.  Section 535.8, subsection 2, paragraph b,
  1  2 unnumbered paragraph 2, Code 2003, is amended to read as
  1  3 follows:
  1  4    The lender shall not charge the borrower for the cost of
  1  5 revenue stamps or real estate commissions which are paid by
  1  6 the seller.
  1  7    PARAGRAPH DIVIDED.  Collection The collection of any cost
  1  8 costs other than as expressly permitted by this lettered
  1  9 paragraph "b" is prohibited.  However, this paragraph shall
  1 10 not apply to prevent a lender from collecting costs permitted
  1 11 by federal law or costs required to be incurred by a federally
  1 12 chartered corporation or similar government=sponsored
  1 13 enterprise such as the federal national mortgage association,
  1 14 the federal home loan mortgage association, the government
  1 15 national mortgage association, or another secondary market
  1 16 investor.
  1 17                           EXPLANATION
  1 18    This bill amends Code section 535.8, which in part
  1 19 regulates costs associated with residential real estate loans
  1 20 and specifically for real property which is a single=family or
  1 21 a two=family dwelling occupied or to be occupied by the
  1 22 borrower.  Such loans include original loans, the refinancing
  1 23 of existing loans, and the assumption of prior loans.
  1 24    The Code section lists a number of costs that a lender may
  1 25 collect in connection with a loan that must be disclosed to
  1 26 the borrower.  The collection of other costs is prohibited.
  1 27 The bill creates an exception to that prohibition in instances
  1 28 in which federal law permits the collection of costs, or costs
  1 29 which are required to be incurred by federal instrumentalities
  1 30 such as Fannie Mae, Freddie Mac, or Ginnie Mae, or another
  1 31 secondary market investor.
  1 32 LSB 5625HV 80
  1 33 da/pj/5
  1 34
  1 35