Iowa Modifies Real Estate & Consumer Loans and Security Freeze Protections
by: Paul McSheffrey
The Iowa legislature has amended various provisions with House File 2324. Among the provisions affected include those relating to residential real estate loan charges, monetary limits specified in the consumer credit code, loan charge limits for one or two family homes occupied by the borrower, debt collectors, and the sale of title insurance.
The majority of the changes relate to statutes that previously had a threshold amount of $25,000. Many of the amended sections now reference Section 537.1301 which defines the “threshold amount”. The bill creates a new subsection within 537.1301 to use the same definition of “threshold amount” as used in the Federal regulation 12 C.F.R. ยง226.3(b). Additionally, Section 537.1301 was amended by creating a new subsection defining “financial institution” to mean any bank, savings and loan association, or credit union incorporated or organized under state or federal law.
The full text of the changes can be read in House File 2324. These rules will become effective on July 1, 2014.
With House File 2368, the State of Iowa has modified its provisions regarding security freeze protections. People defined as “protected consumers” are now given security freeze protection. A “protected consumer” is defined as an individual either under sixteen at the time a request for a protected consumer security freeze is made for the individual, an incapacitated person, or a protected person for whom a guardian or conservator has been appointed.
When a consumer reporting agency commences a protected consumer security freeze, the agency shall not release the consumer’s credit report, information derived from the credit report, or any information found in the record created for the protected consumer. In order for a security freeze to be placed on a protected consumer, the protected consumer’s representative must make a request and provide sufficient identification for the protected consumer and the representative. Additionally, the representative must provide proof of authority to act on behalf of the protected consumer. Sufficient proof of authority can be shown by furnishing an order issued by a court of law, a lawfully executed valid power of attorney, or a written notarized statement signed by the representative that describes the authority of the representative to act on behalf of the protected consumer.
For more information, House File 2368 contains the full text of the act regarding these changes. These rules become effective on July 1, 2014.
About the Author
Paul McSheffrey, J.D. is Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of Northeastern University and earned his Juris Doctor at the New England School of Law. Paul is admitted to the Bar in Massachusetts and New York. He can be reached at paul@bankersadvisory.com
Paul McSheffrey, JD, is a senior regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at the New England School of Law. He is admitted to the Bar in both Massachusetts and New York.
Comments are closed.