Iowa Guidelines

Specific to Iowa state guidelines, the lender must pay the cost of the title insurance policy, since Iowa law allows a lender to impose only a limited number of fees upon a borrower.  Iowa amended its definition of lender to include any party that provides services in connection with a loan transaction, so title insurers now fall within the lender definition.  If the lender obtains an Iowa title guaranty, that charge could be imposed on the borrower.   The Iowa Legislature created Iowa Title Guaranty to provide guarantees of Iowa real property titles, facilitate mortgage lenders’ participation in the secondary market and to help assure the integrity of Iowa’s land-title system. Iowa Title Guaranty’s profits are re-invested in the state of Iowa.

http://iowafinanceauthority.gov/IADD/

The link will provide you the contact information on who you would open the order with if you find that facilitating the closing with the Iowa Title Guaranty is a more favorable solution for your borrowers.