Iowa HF512 modifies rules for closing costs on debts secured by land interests.

Iowa HF512 amends the Code to allow creditors to receive bona fide, reasonable closing costs for debts secured by land interests, provided they do not circumvent or evade certain provisions. It specifies that points and fees must be agreed upon by the creditor and borrower and cannot exceed specified amounts. The bill also allows for discount points that reduce the interest rate or time-price differential. It exempts certain fees or charges listed in Code section 535.8, subsection 4, paragraphs “a” and “b” if the creditor is a mortgage banker.

Iowa HF512 modifies rules for closing costs on debts secured by land interests.

Iowa HF512 amends the Code to allow creditors to receive bona fide, reasonable closing costs for debts secured by land interests, provided they do not circumvent or evade certain provisions. It specifies that points and fees must be agreed upon by the creditor and borrower and cannot exceed specified amounts. The bill also allows for discount points that reduce the interest rate or time-price differential. It exempts certain fees or charges listed in Code section 535.8, subsection 4, paragraphs “a” and “b” if the creditor is a mortgage banker.