Iowa Code § 714E.4 - Violations

It is a violation of this chapter for a foreclosure consultant to do any of the following: 1. Claim, demand, charge, collect, or receive compensation until after the foreclosure consultant has fully performed each and every service the foreclosure consultant contracted to perform or represented the foreclosure consultant would perform. 2. Claim, demand, charge, collect, or receive a fee, interest, or other compensation for any reason which exceeds eight percent per annum of the amount of any loan which the foreclosure consultant may make to the owner. Such a loan must not, as provided in subsection 3, be secured by the residence in foreclosure or any other real or personal property. 3. Take a wage assignment, a lien of any type on real or personal property, or other security to secure the payment of compensation. Any such security is void and unenforceable. 4. Receive consideration from any third party in connection with services rendered to an owner unless the consideration is first fully disclosed to the owner. 5. Acquire an interest, directly or indirectly, or by means of a subsidiary or affiliate in a residence in foreclosure from an owner with whom the foreclosure consultant has contracted. 6. Take a power of attorney from an owner for any purpose, except to inspect documents as provided by law. 7. Induce or attempt to induce an owner to enter into a contract which does not comply in all respects with the requirements of this chapter. 8. Claim, demand, charge, collect, or receive a fee, interest, or other compensation for promising to negotiate a mortgage loan or real estate contract modification, forbearance, repayment plan, or other loss mitigation for the consumer and fail to successfully negotiate such a modification, forbearance, repayment plan, or other loss mitigation. 9. Prohibit the borrower from contacting any lender, servicer, government entity, attorney, counselor, individual, or company that may seek to help the consumer. Any such provision is void and unenforceable. 2008 Acts, ch 1125, §4, 19; 2009 Acts, ch 133, §180 Referred to in §714E.6, 714E.7, 714E.8, 714E.9