Tennessee Amends Several Residential Mortgage Related Provisions
Tennessee amended its provisions for the rules pertaining to home equity conversion mortgages, rate of interest charged by certain industrial loan and thrift registrants and time of manner of foreclosure sales. All of these amendments are brief and have been summarized collectively for your convenience.
Rules Pertaining to Home Equity Conversion Mortgages
Effective as of April 17, 2017, Tennessee amended the application process for home equity conversion mortgages. In sum, they repealed the requirement of having to provide a copy of the most recent federal tax return for each of the applicant’s executive officers. All of the other previous requirements were left intact.
Rate of Interest Charged by Certain Industrial Loan and Thrift Registrants
Effective immediately, Tennessee amended the rate of interest charged by certain industrial loan and thrift registrants by increasing the rate at which a registrant may charge. Previously, a cap of 24% was imposed on all loans made in excess of $100. However, the amendments change this; the increases occur in a step ladder manner and have been broken down for your convenience below.
| Loans $100 or more, first $2500 | 36% |
| Loans $100 or more, above $2500 and below $5000 | 30% |
| Loans $5000 or more | 24% |
Time of Manner of Foreclosure Sales
Effective immediately, Tennessee amended provisions of the sales of execution and the judicial or trust sales to extend the times between which these foreclosure sales are permitted. Previously, the sale must have been made between 10 a.m. and 4 p.m. However, in recognition of the change in the working day the legislature has extended the time to the following: 9 a.m. to 7 p.m.
For your convenience the following links have been provided for a full reading:
- Rules Pertaining to Home Equity Conversion Mortgages
- Time of Manner of Foreclosure Sales
- Rate of Interest Charged by Certain Industrial Loan and Thrift Registrants
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