Bill > HB2382

This bill, titled the "Tennessee Reverse Mortgage Innovation Act," amends various Tennessee Code Annotated sections to modernize and clarify regulations surrounding reverse mortgages, which are loans secured by a homeowner's principal residence that do not require repayment until a future event, such as the homeowner moving out or passing away. Key provisions include renaming the "Home Equity Conversion Mortgage Act" to the "Tennessee Reverse Mortgage Innovation Act" and replacing the term "home equity conversion" with "reverse mortgage" throughout the relevant statutes. The bill defines a reverse mortgage loan more broadly, allowing for loans not insured by the Federal Housing Administration (FHA) or guaranteed by entities like Fannie Mae, as long as they meet state and federal requirements. It clarifies that reverse mortgage loans are non-recourse, meaning the lender's recovery is limited to the property's value, and mandates that borrowers receive independent counseling before closing on a loan. Additionally, the bill prohibits lenders from requiring or soliciting the purchase of other financial products, like annuities or insurance, as a condition for obtaining a reverse mortgage, and aims to position Tennessee as a leader in retirement innovation by expanding financial tools for senior homeowners while maintaining consumer protections.