Bill > SB2190

This bill updates Tennessee law regarding reverse mortgages, which are loans for seniors secured by their homes that don't require repayment until a future event like selling the home or the borrower's death. Key provisions include renaming the "Home Equity Conversion Mortgage Act" to the "Tennessee Reverse Mortgage Innovation Act" to reflect the broader scope of these loans, and importantly, allowing borrowers to satisfy the requirement of receiving independent counseling before closing a reverse mortgage loan by using a counselor approved by the department of financial institutions, in addition to existing options. The bill also clarifies the definition of a reverse mortgage, specifies requirements for authorized lenders, and establishes that these loans are non-recourse, meaning the lender's recovery is limited to the value of the home. Furthermore, it 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 modernize the state's laws to align with national best practices for retirement financial tools.

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https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2190&ga=114