§ 714E.4 — Violations

Iowa § 714E.4

• Jurisdiction: Iowa
• Title XVI: CRIMINAL LAW AND PROCEDURE
• Ch. 714E: FORECLOSURE CONSULTANTS

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It is a violation of this chapter for a foreclosure consultant to do any of the following:
1. Claim, demand, charge, collect, or receive compensation until after the foreclosure
consultant has fully performed each and every service the foreclosure consultant contracted
to perform or represented the foreclosure consultant would perform.
2. Claim, demand, charge, collect, or receive a fee, interest, or other compensation
for any reason which exceeds eight percent per annum of the amount of any loan which
the foreclosure consultant may make to the owner. Such a loan must not, as provided
in subsection 3, be secured by the residence in foreclosure or any other real or personal
property.
3. Take a wage assignment, a lien of any type on real or personal property, or other
securitytosecurethepaymentofcompensation. Anysuchsecurityisvoidandunenforceable.
4. Receive consideration from any third party in connection with services rendered to an
owner unless the consideration is first fully disclosed to the owner.
5. Acquire an interest, directly or indirectly, or by means of a subsidiary or affiliate in a
residenceinforeclosurefromanownerwithwhomtheforeclosureconsultanthascontracted.
6. Take a power of attorney from an owner for any purpose, except to inspect documents
as provided by law.
7. Induce or attempt to induce an owner to enter into a contract which does not comply
in all respects with the requirements of this chapter.
8. Claim, demand, charge, collect, or receive a fee, interest, or other compensation for
promising to negotiate a mortgage loan or real estate contract modification, forbearance,
repayment plan, or other loss mitigation for the consumer and fail to successfully negotiate
such a modification, forbearance, repayment plan, or other loss mitigation.
9. Prohibittheborrowerfromcontactinganylender, servicer, governmententity, attorney,
5 FORECLOSURE CONSULTANTS, §714E.9
counselor, individual, or company that may seek to help the consumer. Any such provision
is void and unenforceable.