Iowa Code 535A.3 – Discretion of financial institution
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Terms Used In Iowa Code 535A.3
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
- property: includes personal and real property. See Iowa Code 4.1
535A.3 Discretion of financial institution.
Nothing contained in this chapter shall preclude a financial institution from applying
economically sound underwriting practices in contemplation of any mortgage loan to any person. Such practices shall include but are not limited to the following:
1. The willingness and the financial ability of the borrower to repay the mortgage loan.
2. The appraised value of any real estate or other item of property proposed as security for any mortgage loan.
3. Diversification of the financial institution’s investment portfolio. [C79, 81, §535A.3]
Referred to in §535A.6
Nothing contained in this chapter shall preclude a financial institution from applying
economically sound underwriting practices in contemplation of any mortgage loan to any person. Such practices shall include but are not limited to the following:
1. The willingness and the financial ability of the borrower to repay the mortgage loan.
2. The appraised value of any real estate or other item of property proposed as security for any mortgage loan.
3. Diversification of the financial institution’s investment portfolio. [C79, 81, §535A.3]
Referred to in §535A.6