Title XIII, COMMERCE (Ch. 505 - 554I)

Any person who in bad faith fails to comply with the provisions of this chapter is subject to punitive damages not to exceed one thousand dollars in addition to actual damages as set forth in section 535A.6 . [C79, 81, §535A.8 ] Referred to in §535A.6

1. A financial institution which makes or offers to make real estate mortgage loans shall not: a. Grant or offer to grant a loan on the prior condition, that the borrower is required to contract with any specific person or organization for either of the following: (1) Services of…

As used in this chapter unless the context otherwise requires: 1. “Administrator” means the superintendent of the division of banking of the department of insurance and financial services. 2. “Branch office” means any location, other than a licensee’s principal place of business …

1. Within one hundred twenty days after the end of a mortgage banker licensee’s fiscal year, the mortgage banker licensee shall file financial statements which are audited by an independent certified public accounting firm. 2. For the purposes of discovering violations of this ch…

A licensee or other mortgagee who services mortgages on residential real estate located in this state shall do all of the following: 1. Disburse required funds paid by the mortgagor and held in escrow for the payment of real estate taxes and insurance payments no later than their…

A licensee or other mortgagee shall not assess a late charge if full payment is received before the date late charges are authorized in the mortgage documents and shall post all periodic payments in full within two business days of receipt. 88 Acts, ch 1146, §12 Referred to in §5…

1. If the administrator believes that a person has engaged in, or is about to engage in, an act or practice that constitutes or will constitute a violation of this chapter , the administrator may apply to the district court for an order enjoining such act or practice. Upon showin…

The administrator shall have broad administrative authority to administer, interpret, and enforce this chapter and to promulgate rules implementing this chapter , including rules providing the grounds for denial of a license based on information received as a result of a backgrou…

An act or omission by the state pursuant to this chapter including, but not limited to, an examination, inspection, audit, or other financial oversight responsibility shall not subject the state to liability. 88 Acts, ch 1146, §15

A licensee or registrant maintaining a branch office in the state shall notify the administrator in writing at least thirty days before closing or otherwise ceasing operations at any branch office in the state. 89 Acts, ch 133, §10 ; 2024 Acts, ch 1038, §6

Each licensee shall submit to the nationwide mortgage licensing system and registry, as defined in section 535D.3 , reports of condition, which shall be in such form and shall contain such information as the nationwide mortgage licensing system and registry may require. 2009 Acts…

A licensee acting as a closing agent shall comply with all of the following: 1. All moneys received for disbursement during a real estate closing shall be deposited in a trust account and, when deposited, the moneys shall be designated as trust funds or trust accounts or under so…

This chapter , except for sections 535B.3 , 535B.11 , 535B.12 , and 535B.13 , does not apply to any of the following: 1. A bank, bank holding company, savings bank, savings and loan association, or credit union organized under the laws of this state, another state, or the United …

A licensee acting as a closing agent shall not make, in a real estate closing, a disbursement from a trust account on behalf of another person, unless the following conditions are met: 1. The cash, funds, money orders, checks, or negotiable instruments necessary for the disbursem…

A licensee may authorize work at a remote location provided all of the following requirements are met: 1. In-person customer interaction does not occur at the residence of an employee or an independent contractor. 2. The licensee’s physical records are not maintained at a remote …

As used in this subchapter , unless the context otherwise provides: 1. “Administrator” means the superintendent of the division of banking of the department of insurance and financial services. 2. “Allowable assets for liquidity” means any of the following assets that may be used…

1. This subchapter shall apply to covered institutions. For entities within a holding company or an affiliated group of companies, this subchapter shall apply at the covered institution level. 2. This subchapter shall not apply to persons exempt from licensing under section 535B.…

1. This section shall not apply to servicers that solely own or conduct servicing on reverse annuity mortgage loans, or to the reverse annuity mortgage loan portfolio administered by a covered institution. 2. A covered institution shall maintain capital and liquidity in complianc…

1. A covered institution shall establish and maintain a board of directors that is responsible for oversight of the covered institution. If a government-sponsored enterprise or government national mortgage association has not approved a covered institution to service loans, or ha…

1. A closing agent affiliated with an attorney is not exempt from licensure under this chapter if the closing agent engages in transactions not exempt under section 535B.2, subsection 8 . 2. Licensure under, and compliance with the provisions of, this chapter shall not exempt any…

1. A person exempt under section 535B.2, subsection 4 or 7 , shall register with the administrator. 2. A registrant shall submit to the administrator a registration statement on forms provided by the administrator. The forms shall include all addresses at which business is to be …

1. A person shall not act as a mortgage banker, mortgage broker, or closing agent in this state or use the title “mortgage banker” or “mortgage broker” without first obtaining a license from the administrator. 2. a. License applicants shall submit to the administrator an applicat…

1. Upon the filing of an application for a license, if the administrator finds that the financial responsibility, character, and general fitness of the applicant and of the members thereof if the applicant is a partnership, association, or other organization and of the officers, …

1. An applicant that is incorporated under the laws of another state in the United States must be authorized to do business in this state. Such a corporation shall file with the license application both of the following: a. An irrevocable consent, duly acknowledged, that suits an…

1. A licensee shall submit a notice of name change and a twenty-five dollar fee for each license to the administrator thirty days prior to changing the name of the licensee. 2. The prior written approval is required whenever a change in control of a licensee or registrant is prop…

1. The administrator may, pursuant to chapter 17A , take disciplinary action against a licensee if the administrator finds any of the following: a. The licensee has violated a provision of this chapter or a rule adopted under this chapter or any other state or federal law applica…

It is a violation of this chapter for a licensee to engage in any of the prohibited acts or practices in section 535D.17 . 2009 Acts, ch 61, §30, 39 ; 2009 Acts, ch 179, §43

A person who, without first obtaining a license under this chapter , engages in the business or occupation of, or advertises or holds the person out as, or claims to be, or temporarily acts as, a mortgage banker, mortgage broker, or closing agent in this state is guilty of a clas…

1. An applicant for a license shall file with the administrator a bond furnished by a surety company authorized to do business in this state, together with evidence of whether the applicant is seeking to transact business as a mortgage broker, mortgage banker, or closing agent. U…

This chapter may be cited as the “Iowa Loan Brokers Act” . 83 Acts, ch 146, §1 Referred to in §714.16

1. If a broker materially violates the loan brokerage agreement, the borrower may, upon written notice, void the agreement. In addition, the borrower may recover all moneys paid the broker, a penalty of twice the amount of the fee sought by the broker, other damages, and reasonab…

This chapter does not apply to activities or arrangements expressly approved or regulated by the department of insurance and financial services. 83 Acts, ch 146, §11 ; 91 Acts, ch 205, §23 ; 93 Acts, ch 60, §19 ; 2023 Acts, ch 19, §2754

In a civil proceeding pursuant to this chapter , a person claiming to be excluded from the definition of “loan broker” or “broker” has the burden of proof in substantiating the claim. 93 Acts, ch 60, §20

1. A loan broker shall maintain accurate records relating to transactions regulated under this chapter . The records shall include all of the following: a. The accounts of the broker. b. A copy of each contract in which the broker is a party, including loan brokerage agreements. …

1. “Advance fee” means consideration of any type including a payment, fee, pay-per-call charge, or deposit, which is assessed or collected prior to the closing of a loan or the issuing of a credit card. 2. “Borrower” means a person who seeks the services of a loan broker. 3. “Loa…

A loan broker shall not directly or indirectly solicit, receive, or accept from a borrower an advance fee as consideration for providing services as a loan broker. A loan broker’s fee may only be assessed or collected from a borrower after the successful procurement of a loan or …

A loan broker who violates a provision of this chapter is guilty of a serious misdemeanor. 83 Acts, ch 146, §6 ; 93 Acts, ch 60, §16 Referred to in §714.16

A loan brokerage agreement shall be in writing, contain a description of the services that the broker agrees to perform for the borrower, and the conditions under which the borrower is obligated to pay the broker. The agreement shall be signed by the broker and the borrower. The …

A waiver of this chapter by a borrower prior to or at the time of entering into a loan brokerage agreement is contrary to public policy and is void. An attempt by a loan broker to have a borrower waive any rights given in this chapter is a violation of this chapter . 83 Acts, ch …

The attorney general may adopt rules according to chapter 17A as necessary or appropriate to implement the purposes of this chapter . 83 Acts, ch 146, §9 ; 93 Acts, ch 60, §17 Referred to in §714.16

This chapter shall be known and may be cited as the “Iowa Secure and Fair Enforcement for Mortgage Licensing Act” . 2009 Acts, ch 61, §1, 25

1. A licensed mortgage loan originator shall annually complete at least eight hours of education approved in accordance with subsection 2 , which shall include at a minimum the following: a. Three hours of federal laws and regulations pertaining to residential mortgage loan origi…

In addition to any other duties imposed upon the superintendent by law, the superintendent shall require mortgage loan originators to be licensed and registered, as provided in this chapter , through the nationwide mortgage licensing system and registry. In order to carry out thi…

The superintendent shall establish a process by rule whereby mortgage loan originators may challenge information entered into the nationwide mortgage licensing system and registry by the superintendent. 2009 Acts, ch 61, §13, 25

1. The superintendent may, pursuant to chapter 17A , take disciplinary action against a licensed mortgage loan originator if the superintendent finds any of the following: a. The licensee has violated a provision of this chapter or a rule adopted pursuant to this chapter or any o…

1. a. A mortgage loan originator shall be covered by a surety bond in accordance with this section unless the superintendent establishes a recovery fund pursuant to subsection 4 into which the mortgage loan originator makes payments. In the event that the mortgage loan originator…