“In these tough economic times, middle class families deserve more financial security before taking out a mortgage. They need complete transparency from their mortgage broker or banker with full disclosure of fees, compensation and accurate loan information,” said State Representative Paul Shomshor of Council Bluffs, who won approval of the bill.
The foreclosure protection bill approved today, House File 375, prohibits brokers or bankers from misleading borrowers or making false statements, charging fees for loans that don’t materialize, or accepting any undisclosed compensation for their services.
The bill is just one piece of the foreclosure protection package outlined by Democrats earlier this year. The House has already approved House File 251, which prohibits home foreclosures on military reserve members or their families while serving on active duty, and Senate File 364, which requires information about the Iowa Mortgage Foreclosure Hotline be given by lenders to homeowners at the beginning of the foreclosure process.
The bill now goes to the Senate.