§ 528.6 — Prototype plan for alternative mortgage loans — approval by administrator

Iowa § 528.6

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 528: ALTERNATIVE MORTGAGE LOANS

Text

1. Before a financial institution makes an alternative mortgage loan, it shall submit to the
administrator for that type of institution, for the administrator’s approval, the prototype plan
and subsequent amendments to the plan under which alternative mortgage loans are to be
made. Aplansubmittedshallincludeacopyoftheformofnoteandmortgageinstrumentthat
will be used for that type of alternative mortgage loan, a detailed description of how the plan
will function, and other information as the administrator requires. The administrator shall
specifically review the mortgage instrument submitted as part of the plan to ensure that any
default provisions included in the deed pursuant to section 528.7, subsection 2, paragraph
“c”, are necessary to protect the interests of the mortgagee and are fair and equitable for the
mortgagor. A reverse annuity mortgage shall provide that the mortgagor or mortgagors of
the property shall retain a life estate in the property until the death of the mortgagor or all
of the mortgagors, notwithstanding that the annuity may expire prior to the end of the life
estate, depending upon the terms of the annuity.
2. The administrator may approve any plan and amendment to a plan that in the
administrator’s opinion serves the best interests of prospective mortgagors and mortgagees.
The administrator’s considerations shall include, without limitation, the flexibility of each
plan to serve the differing needs of various persons who may apply for an alternative
mortgage loan under the plan.
3. If the administrator approves the plan or amendment, the financial institution may
make alternative mortgage loans in accordance with the approved plan and any approved
amendments.
4. This section applies to all alternative mortgage loans made on or after January 1, 1990.