Iowa SSB1103 amends closing costs for debts secured by land interests, allowing certain fees if reasonable and bona fide.

Iowa SSB1103 modifies the law regarding closing costs for debts secured by an interest in land. It allows creditors to contract for and receive closing costs if they are bona fide, reasonable, and not for circumvention purposes. The bill also permits discount points to reduce the interest rate or time-price differential. However, if a mortgage banker makes a consumer loan with points and fees not exceeding federal limits, the loan is exempt from certain restrictions.

Iowa SSB1103 amends closing costs for debts secured by land interests, allowing certain fees if reasonable and bona fide.

Iowa SSB1103 modifies the law regarding closing costs for debts secured by an interest in land. It allows creditors to contract for and receive closing costs if they are bona fide, reasonable, and not for circumvention purposes. The bill also permits discount points to reduce the interest rate or time-price differential. However, if a mortgage banker makes a consumer loan with points and fees not exceeding federal limits, the loan is exempt from certain restrictions.