SF 2184 (LSB 5546SV (4) 83)

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 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 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 other applicable programs for first-time homebuyers.  However, a person eligible for one of the authority’s other applicable programs for homebuyers may use a lender that does not participate in the authority’s programs for 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.  A mortgage lender maintaining an office in the state that does not participate in the authority’s programs for homebuyers may submit an application to the authority for approval to provide a mortgage loan or other financing under the home ownership assistance program or another homebuyer program, if applicable pursuant to subsection 4, paragraph “b”. The authority shall prescribe a form for such applications.
   b.  The authority shall by rule establish criteria for the review and approval of applications submitted under this subsection, including criteria for the approval of a mortgage lender that offers an eligible person a lower annual percentage rate than the annual percentage rates available from lenders that participate in the authority’s applicable programs for homebuyers.
   c.  The authority may determine and collect a reasonable application fee for each application submitted under this subsection. The application fees collected under this subsection shall be used exclusively for costs associated with the review and approval of applications submitted under this subsection.
EXPLANATION
   This bill allows eligible persons for the home ownership assistance program for military members to use a lender that does not participate in the Iowa finance authority’s other programs for homebuyers if an application submitted by the lender is approved by the authority. The bill also removes the provision that requires eligible persons to use lenders that participate in the authority’s first-time homebuyer programs. Under the bill, an eligible person may use a lender that participates in any of the authority’s programs for homebuyers. The bill allows a mortgage lender that maintains an office in the state to submit an application to the authority to provide a mortgage loan or other financing under the home ownership assistance program for military members or other homebuyer program if the eligible person is required to participate in another program. The bill requires the authority to prescribe a form for such applications.
   The bill requires the authority to establish criteria for the review and approval of applications submitted by lenders. The bill allows the authority to determine and collect a reasonable application fee for each application submitted. The bill requires all fees collected by the authority to be used exclusively for costs associated with the review and approval of submitted applications.