Senate File 2184 - Introduced SENATE FILE 2184 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO SF 2019) A BILL FOR An Act relating to eligible lenders for the home ownership 1 assistance program for military members. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5546SV (4) 83 md/sc

S.F. 2184 Section 1. Section 16.54, subsection 4, paragraphs a and b, 1 Code 2009, are amended to read as follows: 2 a. The person eligible for the program shall, for financed 3 home purchases that close on or after July 1, 2008, use a 4 lender that participates in the authority’s applicable programs 5 for first-time homebuyers or a lender approved by the authority 6 under subsection 4A . 7 b. If the person eligible for the program is a first-time 8 homebuyer, then, for For financed home purchases that close on 9 or after July 1, 2008, the eligible person shall participate, 10 if eligible to participate, in one of the authority’s 11 other applicable programs for first-time homebuyers. However, 12 a person eligible for one of the authority’s other applicable 13 programs for homebuyers may use a lender that does not 14 participate in the authority’s programs for homebuyers if such 15 lender is approved by the authority under subsection 4A. 16 Sec. 2. Section 16.54, Code 2009, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 4A. a. A mortgage lender maintaining 19 an office in the state that does not participate in the 20 authority’s programs for homebuyers may submit an application 21 to the authority for approval to provide a mortgage loan or 22 other financing under the home ownership assistance program or 23 another homebuyer program, if applicable pursuant to subsection 24 4, paragraph “b” . The authority shall prescribe a form for such 25 applications. 26 b. The authority shall by rule establish criteria for 27 the review and approval of applications submitted under this 28 subsection, including criteria for the approval of a mortgage 29 lender that offers an eligible person a lower annual percentage 30 rate than the annual percentage rates available from lenders 31 that participate in the authority’s applicable programs for 32 homebuyers. 33 c. The authority may determine and collect a reasonable 34 application fee for each application submitted under this 35 -1- LSB 5546SV (4) 83 md/sc 1/ 2

S.F. 2184 subsection. The application fees collected under this 1 subsection shall be used exclusively for costs associated with 2 the review and approval of applications submitted under this 3 subsection. 4 EXPLANATION 5 This bill allows eligible persons for the home ownership 6 assistance program for military members to use a lender that 7 does not participate in the Iowa finance authority’s other 8 programs for homebuyers if an application submitted by the 9 lender is approved by the authority. The bill also removes the 10 provision that requires eligible persons to use lenders that 11 participate in the authority’s first-time homebuyer programs. 12 Under the bill, an eligible person may use a lender that 13 participates in any of the authority’s programs for homebuyers. 14 The bill allows a mortgage lender that maintains an office in 15 the state to submit an application to the authority to provide 16 a mortgage loan or other financing under the home ownership 17 assistance program for military members or other homebuyer 18 program if the eligible person is required to participate in 19 another program. The bill requires the authority to prescribe 20 a form for such applications. 21 The bill requires the authority to establish criteria for 22 the review and approval of applications submitted by lenders. 23 The bill allows the authority to determine and collect a 24 reasonable application fee for each application submitted. The 25 bill requires all fees collected by the authority to be used 26 exclusively for costs associated with the review and approval 27 of submitted applications. 28 -2- LSB 5546SV (4) 83 md/sc 2/ 2