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
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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
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