Configuration Update: Late Fee Defaults for Junior Lien Loans in Iowa
Under Iowa Code Ann. § 537.2502(1)(b) through (3), an interest-bearing consumer credit transaction (e.g. a junior lien mortgage loan, the principal amount of which is equal to or less than the threshold amount set forth under 12 CFR § 1026.3(b)(1) and its associated Official Staff Commentaries) limits the amount of an assessed late charge to 5% of the unpaid amount of the installment,…