Does the state require a physical location within the state?
No.

Is there individual loan officer licensing?
Yes.

What are lenders, brokers and loan officers called?
Iowa uses the terms mortgage broker, mortgage banker and individual registrant.

What is the cost of a license? Surety bond? Are there net worth requirements?
Persons wanting to originate or broker Iowa mortgage loans must apply for an Iowa mortgage banker and broker license and must file a consumer credit notification. Iowa has separate licensing for mortgage brokering and mortgage banking (first mortgages) and for second mortgage lending. Mortgage broker/banker licensing is covered by the Mortgage Bankers and Brokers Law. Consumer loan lending, which includes most second mortgage loans with loan amounts of $25,000 or less, is covered by the Iowa Consumer Credit Code. There are no laws or regulations covering consumer loans over $25,000. In other words, to originate second mortgages of $25,000 or less, a company must file a consumer credit notification under the Regulated Loan Law.

To apply for a mortgage broker or mortgage banker license, a company must submit a completed application package with a fee of $500 to the Division of Banking. A mortgage banker applicant must submit a surety bond in the amount of $30,000. A mortgage broker applicant must submit a surety bond in the amount of $15,000. Mortgage broker and mortgage banker licenses expire June 30 of each year. Mortgage banker renewal applications must be submitted before June 1 with a $400 renewal fee. Mortgage broker renewal applications must also be submitted by June 1 with a $200 renewal fee. Individual registrants employed by a licensee (loan officers) must register annually with the state. An individual registrant registering for the first time must submit to a criminal background check. Individual registrations expire on June 30 following the date of registration. Renewals are $100 and must be submitted by June 1.

Is there a pre-licensing education requirement? Is there a test?
No.

Is there a CE requirement?
All individual registrants must complete 12 hours of approved continuing education each year.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
Iowa issues separate broker and lender licenses.

Are there any state specific high cost loan provisions?
No.

Are there any state specific predatory lending laws?
No.

Closing practices – attorney or title state? Wet or dry settlement?
Iowa is treated as a wet funding state by practice. There is no penalty for not delivering funds with closing documents, but closing may be delayed if funds are not delivered.

Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
See the discussion regarding the Regulated Loan Law/Consumer Credit Code under the licensing discussion above.

Who is the regulator and what is their contact information?
Superintendent
Division of Banking
Iowa Department of Commerce
200 East Grand Avenue
Suite 300
Des Moines, Iowa 50309
Phone: (515) 281-4014
www.idob.state.ia.us


DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.


Back to top