Amendment H-1240 to SF 398

Filed April 16, 2025 in the House by

In plain words

AI summary This amendment changes the rules for when lenders can charge discount points to lower interest rates, requiring that the total points and fees do not exceed specific federal limits. It also states that if a licensed mortgage banker provides a loan that stays within these federal limits, the loan is not subject to certain state-level fee restrictions.¹

What it changes

1. Page 1, by striking lines 1 through
3. Page 1, line 13, by striking “subparagraphs:” and inserting “subparagraph:”
4. Page 1, by striking lines 14 through 19 and inserting: “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. ___. Section 537.2501, Code 2025, is amended by adding the following new subsection: NEW SUBSECTION .
5. 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 subject to the limitations on fees specified in section 535.8, subsection 4, paragraph “a” , or section 535.8, subsection
6. ”
7. By renumbering as necessary.

Official amendment (PDF) · In the Bill Book