Iowa Code 528.5 – Disclosure of alternative mortgage loan information to applicants
Current as of: 2023 | Check for updates
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1. A financial institution that offers or makes an alternative mortgage loan shall include in any disclosure of the rates or availability of mortgage loans, the rates and availability of reverse annuity mortgages or graduated payment mortgage loans, if and when such loans are offered. The administrator may prescribe by rule forms for the required disclosures.
Terms Used In Iowa Code 528.5
- Administrator: means the superintendent of banking and the superintendent of credit unions within the department of commerce. See Iowa Code 528.2
- Alternative mortgage loan: means a mortgage loan which is a reverse annuity mortgage loan or graduated payment mortgage loan. See Iowa Code 528.2
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Financial institution: means financial institution as defined in section 535A. See Iowa Code 528.2
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: means a loan secured by a first mortgage on one, two, three, or four family, owner-occupied residential real property. See Iowa Code 528.2
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Rule: includes "regulation". See Iowa Code 4.1
2. A prospective mortgage loan applicant shall have the choice of applying for a mortgage loan or any type of alternative mortgage loan offered by the financial institution.