HF 2055 (LSB 5546YH (3) 83)

HOUSE FILE 2055

BY  SWEENEY, CHAMBERS, ALONS, TYMESON, S. OLSON, ZIRKELBACH, WORTHAN, MAY, and MERTZ

A BILL FOR

An Act relating to eligible lenders for the home ownership assistance program for military members.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 16.54, subsection 4, paragraphs a and b, Code 2009, are amended to read as follows:
   a.  The person eligible for the program shall, for financed home purchases that close on or after July 1, 2008, use a lender that participates in the authority’s applicable programs for first-time homebuyers or a lender approved by the authority under subsection 4A.
   b.  If the person eligible for the program is a first-time homebuyer, then, for financed home purchases that close on or after July 1, 2008, the eligible person shall participate, if eligible to participate, in one of the authority’s applicable programs for first-time homebuyers.  However, a person eligible for the program may use a lender that does not participate in the authority’s applicable programs for first-time homebuyers if such lender is approved by the authority under subsection 4A.
    Sec. 2.  Section 16.54, Code 2009, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  A person eligible for the program may submit an application to the authority for approval of a lender, even if such lender does not participate in the authority’s applicable programs for first-time homebuyers. The authority shall have discretion to approve or disapprove any application under this subsection. The authority shall prescribe a form for such applications.
EXPLANATION
   This bill allows eligible persons for the home ownership assistance program for military members to submit an application for approval of a lender other than those lenders who participate in the Iowa finance authority’s applicable programs for first-time homebuyers. The bill gives the Iowa finance authority discretion to approve or disapprove an application to use an alternative lender. The bill also requires the Iowa finance authority to prescribe a form for such applications.