535A.9 Tying arrangements prohibited.
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/ia/chapter-535a-mortgage-loans-red-lining/535a-9·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
1. A financial institution which makes or offers to make real estate mortgage loans shall not:
a. Grant or offer to grant a loan on the prior condition, that the borrower is required to contract with any specific person or organization for either of the following:
(1)Services of a real estate agent or broker.
(2)Insurance services as an agent, broker, or underwriter.
b. Use confidential credit status information that is used for qualifying a person for the purchase of real property for solicitation purposes either directly or indirectly by an affiliate subsidiary.
c. Attempt or permit a real estate or insurance subsidiary to attempt to create the impression in its advertising or in any communication that the customers of the subsidiary shall have priority access to the funds of the financial institution or are entitled to preferential interest rates or other terms.
2. This section does not apply to the Iowa finance authority or a program operated pursuant to chapter 16.
Referred to in §535A.6, 535A.7