SF 2287 (LSB 5732SV (1) 90)

SENATE FILE 2287

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO SSB 3077)

A BILL FOR

An Act relating to points and fees charged on loans by mortgage bankers.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 535.8, subsection 2, Code 2024, is amended to read as follows:
   2.  If a lender that is a financial institution as defined in section 537.1301 makes a loan in which the points and fees the borrower is charged by all lenders in connection with the loan do not exceed the amounts specified in 12 C.F.R. §1026.43(e)(3), the loan shall not be subject to the provisions of subsection 4, paragraphs “a”, “b”, and “d”, or subsection 5. If a lender that is a mortgage banker licensed under section 535B.5 or registered under section 535B.3 makes a loan in which the points and fees the borrower is charged by all lenders in connection with the loan do not exceed the amounts specified in 12 C.F.R. §1026.43(e)(3), the loan shall not be subject to the provisions of subsection 4, paragraph “a”, or subsection 5. This subsection applies to the financial institution lender that originates the loan and to subsequent purchasers of the loan originated by the financial institution.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to points and fees charged on loans by mortgage bankers. Under current law, if a lender that is a mortgage banker makes a loan in which the points and fees the borrower is charged by all lenders in connection with the loan do not exceed the amounts specified in 12 C.F.R. §1026.43(e)(3), the loan shall not be subject to the provisions of Code section 535.8(5). Under the bill, the loan shall also not be subject to Code section 535.8(4)(a).