§ 528.6

528.6 Prototype plan for alternative mortgage loans — approval by administrator. 1. Before a financial institution makes an alternative mortgage loan, it shall submit to the administrator for that type of institution, for the administrator’s approval, the prototype planand subsequent amendments to the plan under which alternative mortgage loans are to bemade. A plan submitted shall include a copy of the form of note and mortgage instrument thatwill be used for that type of alternative mortgage loan, a detailed description of how the planwill function, and other information as the administrator requires. The administrator shallspecifically review the mortgage instrument submitted as part of the plan to ensure that anydefault provisions included in the deed pursuant to section 528.7, subsection 2, paragraph'c', are necessary to protect the interests of the mortgagee and are fair and equitable for themortgagor. A reverse annuity mortgage shall provide that the mortgagor or mortgagors ofthe property shall retain a life estate in the property until the death of the mortgagor or allof the mortgagors, notwithstanding that the annuity may expire prior to the end of the lifeestate,

ors ofthe property shall retain a life estate in the property until the death of the mortgagor or allof the mortgagors, notwithstanding that the annuity may expire prior to the end of the lifeestate, depending upon the terms of the annuity. 2. The administrator may approve any plan and amendment to a plan that in the administrator’s opinion serves the best interests of prospective mortgagors and mortgagees.The administrator’s considerations shall include, without limitation, the flexibility of eachplan to serve the differing needs of various persons who may apply for an alternativemortgage loan under the plan. 3. If the administrator approves the plan or amendment, the financial institution may make alternative mortgage loans in accordance with the approved plan and any approvedamendments. 4. This section applies to all alternative mortgage loans made on or after January 1, 1990.89 Acts, ch 267, §6 Sat Dec 23 01:30:52 2023 Iowa Code 2024, Section 528.6 (16, 0)