House File 699 - Introduced HOUSE FILE BY FORD Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing for the establishment of a financial literacy 2 and counseling pilot program to be administered by the Iowa 3 finance authority, making an appropriation, and providing an 4 effective date. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2592HH 83 7 kh/nh/14 PAG LIN 1 1 Section 1. IOWA FINANCE AUTHORITY == FINANCIAL LITERACY 1 2 AND COUNSELING PILOT PROGRAM. 1 3 1. A financial literacy and counseling pilot program is 1 4 established to be administered by the Iowa finance authority 1 5 in collaboration with the department of commerce to be 1 6 operated in the five counties with the highest mortgage 1 7 foreclosure rates as of the effective date of this Act. For 1 8 the fiscal year beginning July 1, 2009, and ending June 30, 1 9 2010, a mortgage banker or mortgage broker licensed or 1 10 registered under chapter 535B who issues mortgage loans to 1 11 consumers within the five counties shall recommend 1 12 participation in the pilot program to any consumer seeking a 1 13 mortgage loan with origination fees greater than five percent. 1 14 The mortgage banker or mortgage broker shall also notify the 1 15 consumer that the mortgage loan may have attributes that are 1 16 predatory. A person who offers education, advice, or 1 17 counseling through the financial literacy and counseling pilot 1 18 program shall not be held liable for any damages incurred from 1 19 actions taken based on the education, advice, or counseling 1 20 obtained under the pilot program. In addition to the purposes 1 21 listed in section 16.10, the authority shall use moneys 1 22 declared by the authority to be surplus pursuant to section 1 23 16.10 to fund the pilot program. 1 24 2. The Iowa finance authority, in collaboration with the 1 25 department of commerce, shall report its findings and 1 26 recommendations for statewide implementation of the pilot 1 27 program to the general assembly by January 15, 2011. 1 28 Sec. 2. APPROPRIATION == IOWA FINANCE AUTHORITY. There is 1 29 appropriated from the general fund of the state to the Iowa 1 30 finance authority for the fiscal year beginning July 1, 2009, 1 31 and ending June 30, 2010, the following amount, or so much 1 32 thereof as is necessary, to be used for the purposes 1 33 designated: 1 34 For administration of the financial literacy and counseling 1 35 pilot program as enacted by this Act: 2 1 .................................................. $ 5,000 2 2 Sec. 3. EFFECTIVE DATE. This Act, being deemed of 2 3 immediate importance, takes effect upon enactment. 2 4 EXPLANATION 2 5 This bill establishes a financial literacy and counseling 2 6 program to be administered by the Iowa finance authority in 2 7 collaboration with the department of commerce. 2 8 The one=year pilot program is to be operated in the five 2 9 counties with the highest mortgage foreclosure rates as of the 2 10 effective date of the Act. A mortgage banker or mortgage 2 11 broker issuing mortgage loans to consumers within the five 2 12 counties must recommend participation in the pilot program to 2 13 any consumer seeking a mortgage loan with origination fees 2 14 greater than 5 percent, and must notify the consumer that the 2 15 mortgage loan may have attributes that are predatory. 2 16 A person who offers education, advice, or counseling 2 17 through the pilot program shall not be held liable for any 2 18 damages incurred from actions taken based on the education, 2 19 advice, or counseling obtained under the pilot program. The 2 20 bill appropriates $5,000 from the state general fund for the 2 21 2009=2010 fiscal year to the authority for administration of 2 22 the program and directs the authority to fund the pilot 2 23 program with moneys declared by the authority to be surplus. 2 24 The authority, in collaboration with the department of 2 25 commerce, must report its findings and recommendations for 2 26 statewide implementation of the pilot program to the general 2 27 assembly by January 15, 2011. 2 28 The bill takes effect upon enactment. 2 29 LSB 2592HH 83 2 30 kh/nh/14.1