A bill for an act relating to closing costs for a debt secured by an interest in land.

This bill amends Iowa law concerning closing costs for consumer loans secured by an interest in land, such as mortgages. It allows creditors to contract for and receive bona fide and reasonable closing costs, including certain specified fees. For mortgage bankers, if the points and fees on a consumer loan do not exceed federal limits, specific state restrictions on those fees will not apply. Additionally, the bill explicitly permits discount points that genuinely reduce the interest rate and points agreed upon by the creditor and borrower to offer a given interest rate.