Most people don’t realize that we are able to write title insurance in Iowa. As with any other state in which we provide title insurance, Iowa has its own practices that we need to abide by to be able to issue policies.
Writing Title from Outside the State
First of all, title insurance can't be issued inside the state of Iowa. However, it may be issued beyond the state of Iowa. So title insurance companies in other states do write title insurance for properties in Iowa. We are among those companies, and we're very knowledgeable about the rules in Iowa.
National vs. Iowa-Chartered Banks
In most cases, however, Iowa law prohibits an Iowa-chartered bank from obtaining a title insurance policy and passing that cost along for their customer. Instead they've to obtain an Iowa Title Guarantee Fund policy. But if it's not an Iowa chartered bank, then they are free to obtain its title insurance from outside the state. It is essential for an Iowa-chartered bank to know because the Iowa-chartered bank is technically prohibited under Iowa law from passing the cost along to the client. This can create some confusion because usually it's the client who pays the premium around the lender's policy.
That being said, most banks are nationally chartered (a minimum of the big banks) so we don't encounter this issue too often, but it is good to become conscious of this potential roadblock.