Tennessee legislation · 114th General Assembly

Tennessee HB2382: AN ACT to amend Tennessee Code Annotated, Title 39, Chapter 15, Part 5; Title 45, Chapter 2, Part 12; Title 45, Chapter 20; Title 47, Chapter 30 and Title 67, Chapter 4, Part 4, relative to reverse mortgages.

Status: Chaptered, May 26, 2026

Fiscal Summary NOT SIGNIFICANT Bill Summary The Home Equity Conversion Mortgage Act governs home equity conversion mortgages in this state. This bill revises the Home Equity Conversion Mortgage Act by renaming it the Tennessee Reverse Mortgage Innovation Act and, instead, governing reverse mortgage loans, including proprietary reverse mortgage loans. GENERAL REMOVAL OF FANNIE MAE REQUIREMENTS Present law ties multiple provisions of the United States department of housing and urban development's ("HUD") home equity conversion mortgage program and Fannie Mae reverse mortgage guidelines, including provisions governing lender approval language, counseling references, fee limitations tied to caps, and a separate statutory section governing Fannie Mae Reverse Mortgage Loans, to such mortgages in this state. This bill generally removes those HUD-specific and Fannie Mae-specific references to operate as a state-law framework for reverse mortgage loans that may be insured or non-insured, including proprietary products, while retaining key consumer protections. AUTHORIZED LENDER DESIGNATION AND APPLICATION Present law provides two pathways to become an authorized lender. First, the Tennessee housing development agency ("agency") and any bank, savings institution, or credit union may be designated as an authorized lender by giving the commissioner of financial institutions ("commissioner") notice at least 30 days before making a home equity conversion loan or reverse mortgage loan. The notice must be on a form prescribed by the commissioner and must include evidence the applicant is an approved Fannie Mae or HUD lender. The commissioner may object to the notice by denying the designation before it becomes effective, provided the commissioner states the reasons for the objection. Second, any other person, firm, or corporation that