Bills › 91st General Assembly
Relating to closing costs for a debt secured by an interest in land
Sponsored by the Senate Commerce (companion To Hf 512 By Committee on Commerce) Committee
Where it is now
- Done: IntroducedFebruary 5, 2025
- Done: SubcommitteeFebruary 5, 2025
- Done: Senate committeeFebruary 20, 2025
- Done: Passes the SenateMarch 26, 202547–0
- Done: House committeeApril 3, 2025
- Done: Passes the HouseApril 17, 202593–0
- Done: To the GovernorMay 6, 2025
- Done: Signed into lawMay 6, 2025
Signed into law What’s a funnel?
What’s in it
AI summary Lenders who provide loans for land or homes can charge certain closing costs as long as the fees are fair and honest. They are also allowed to charge discount points if those points are used to lower the borrower's interest rate. These rules apply to how much money lenders can collect from people taking out these types of loans.1
Read the official explanation
This bill relates to closing costs for a debt secured by an interest in land.8(5). A creditor may also contract for and receive discount points for the purpose of reducing, and which result in a reduction of, the interest rate or time-price differential applicable to the loan, and points agreed upon by the creditor and borrower to offer a given interest rate.
Why it matters. Lenders who provide loans secured by land can charge bona fide and reasonable closing costs and discount points to reduce interest rates. These rules apply to creditors and borrowers, though certain mortgage bankers may follow different limits regarding points and fees.2
Changed since by amendment H-1240; see Amendments.
Senate subcommittee
Named February 5, 2025 (as SSB 1103). On February 13, 2025 it recommended amendment and passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
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91st General Assembly