S.F. _____ 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 3 in section 537.1301 or a mortgage banker licensed pursuant 4 to chapter 535B makes a loan in which the points and fees 5 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 pursuant to Code 18 chapter 535B makes a loan in which the points and fees the 19 borrower is charged in connection with the loan do not exceed 20 the amounts specified in 12 C.F.R. §1026.43(e)(3), the loan 21 shall not be subject to the provisions of Code section 535.8, 22 subsection 4, paragraphs “a”, “b”, and “d” (providing for 23 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 2413XC (2) 89 jda/rn 1/ 1