S.F. 567 Section 1. Section 535.8, subsection 2, Code 2021, is 1 amended to read as follows: 2 2. If a lender that is a financial institution as defined in 3 section 537.1301 or a mortgage banker licensed or registered 4 pursuant to chapter 535B makes a loan in which the points and 5 fees the borrower is charged by all lenders in connection with 6 the loan do not exceed the amounts specified in 12 C.F.R. 7 §1026.43(e)(3), the loan shall not be subject to the provisions 8 of subsection 4 , paragraphs “a” , “b” , and “d” , or subsection 9 5 . This subsection applies to the financial institution lender 10 that originates the loan and to subsequent purchasers of the 11 loan originated by the financial institution. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to loans originated by mortgage bankers. 16 The bill provides that if a lender that is a financial 17 institution or a mortgage banker licensed or registered 18 pursuant to Code chapter 535B makes a loan in which the points 19 and fees the borrower is charged in connection with the loan do 20 not exceed the amounts specified in 12 C.F.R. §1026.43(e)(3), 21 the loan shall not be subject to the provisions of Code section 22 535.8, subsection 4, paragraphs “a”, “b”, and “d” (providing 23 for additional fees and the right to recover unlawful fees), or 24 subsection 5 (authorizing the lender to offer to make a loan 25 on all of the same terms except at a lower interest rate in 26 exchange for the payment of an interest reduction fee). 27 -1- LSB 2413SV (2) 89 jda/rn 1/ 1