Iowa SF 398: A bill for an act relating to closing costs for a debt secured by an interest in land.

Bill Text

Senate
File
398
-
Enrolled

Senate
File
398

AN
ACT

RELATING
TO
CLOSING
COSTS
FOR
A
DEBT
SECURED
BY
AN
INTEREST
IN

LAND.

BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:

Section
1.
Section
537.2501,
subsection
1,
paragraph
e,

Code
2025,
is
amended
by
adding
the
following
new
subparagraph:

NEW
SUBPARAGRAPH

.
(6)
Discount
points
for
the
purpose
of

reducing,
and
that
result
in
a
bona
fide
reduction
of,
the

interest
rate
applicable
to
the
debt,
or
points,
agreed
upon
by

the
creditor
and
the
consumer
to
secure
a
given
interest
rate,

provided
the
points
and
fees
the
consumer
is
charged
by
all

lenders
in
connection
with
the
consumer
loan
do
not
exceed
the

amounts
specified
in
12
C.F.R.
§1026.43(e)(3).

Sec.
2.
Section
537.2501,
Code
2025,
is
amended
by
adding

the
following
new
subsection:

NEW
SUBSECTION

.
4.
For
a
consumer
loan
secured
by
an

interest
in
land,
if
a
creditor
that
is
a
mortgage
banker

licensed
under
section
535B.5
or
registered
under
section

535B.3
originates
such
consumer
loan
in
which
the
annual

percentage
rate,
points,
and
fees
the
consumer
is
charged

by
all
lenders
in
connection
with
the
consumer
loan
do
not

exceed
the
amounts
specified
in
12
C.F.R.
§1026.43(e)(2)(vi)

and
12
C.F.R.
§1026.43(e)(3),
the
consumer
loan
shall
not
be

Senate
File
398,
p.
2

subject
to
the
limitations
on
fees
specified
in
section
535.8,

subsection
4,
paragraph
“a”
,
or
section
535.8,
subsection
5.

______________________________

AMY
SINCLAIR

President
of
the
Senate

______________________________

PAT
GRASSLEY

Speaker
of
the
House

I
hereby
certify
that
this
bill
originated
in
the
Senate
and

is
known
as
Senate
File
398,
Ninety-first
General
Assembly.

______________________________

W.
CHARLES
SMITHSON

Secretary
of
the
Senate

Approved
_______________,
2025
______________________________

KIM
REYNOLDS

Governor