Bill Text: IA HSB125 | 2025-2026 | 91st General Assembly | Introduced
Bill Title: A bill for an act relating to closing costs for a debt secured by an interest in land.
Spectrum: Committee Bill
Status: (Introduced) 2025-02-06 - Subcommittee Meeting: 02/11/2025 12:30PM House Lounge. [HSB125 Detail]
Download: Iowa-2025-HSB125-Introduced.html
House
Study
Bill
125
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
relating
to
closing
costs
for
a
debt
secured
by
an
1
interest
in
land.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
537.2501,
subsection
1,
paragraph
e,
1
subparagraph
(5),
Code
2025,
is
amended
to
read
as
follows:
2
(5)
Fees
or
charges
listed
in
section
535.8,
subsection
4
,
3
paragraphs
“a”
and
“b”
.
If
a
creditor
that
is
a
mortgage
banker
4
licensed
under
section
535B.5
or
registered
under
section
5
535B.3
makes
a
consumer
loan
secured
by
an
interest
in
land
6
in
which
the
points
and
fees
the
borrower
is
charged
by
all
7
lenders
in
connection
with
the
loan
do
not
exceed
the
amounts
8
specified
in
12
C.F.R.
§1026.43(e)(3),
the
consumer
loan
shall
9
not
be
subject
to
section
535.8,
subsection
4,
paragraph
“a”
,
10
or
section
535.8,
subsection
5.
11
Sec.
2.
Section
537.2501,
subsection
1,
paragraph
e,
Code
12
2025,
is
amended
by
adding
the
following
new
subparagraphs:
13
NEW
SUBPARAGRAPH
.
(6)
Discount
points
for
the
purpose
of
14
reducing,
and
that
result
in
a
bona
fide
reduction
of,
the
15
interest
rate
or
time-price
differential
applicable
to
the
16
loan.
17
NEW
SUBPARAGRAPH
.
(7)
Points,
agreed
upon
by
the
creditor
18
and
borrower,
to
offer
a
given
interest
rate.
19
EXPLANATION
20
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
21
the
explanation’s
substance
by
the
members
of
the
general
assembly.
22
This
bill
relates
to
closing
costs
for
a
debt
secured
by
an
23
interest
in
land.
24
Under
the
bill,
in
addition
to
permitted
finance
charges,
25
with
respect
to
a
debt
secured
by
an
interest
in
land,
a
26
creditor
may
contract
for
and
receive
closing
costs,
provided
27
they
are
bona
fide,
reasonable
in
amount,
and
not
for
the
28
purpose
of
circumvention
or
evasion
of
Code
chapter
537,
29
including
fees
or
charges
listed
in
Code
section
535.8(4)(a)
30
and
(b),
except
if
a
creditor
that
is
a
mortgage
banker
makes
31
a
consumer
loan
secured
by
an
interest
in
land
in
which
the
32
points
and
fees
the
borrower
is
charged
by
all
lenders
in
33
connection
with
the
loan
do
not
exceed
the
amounts
specified
34
in
12
C.F.R.
§1026.43(e)(3),
the
consumer
loan
shall
not
be
35
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_____
subject
to
Code
section
535.8(4)(a)
or
Code
section
535.8(5).
1
A
creditor
may
also
contract
for
and
receive
discount
points
2
for
the
purpose
of
reducing,
and
which
result
in
a
reduction
3
of,
the
interest
rate
or
time-price
differential
applicable
to
4
the
loan,
and
points
agreed
upon
by
the
creditor
and
borrower
5
to
offer
a
given
interest
rate.
6
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