Bill > SB2190

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 for seniors secured by their home 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" and replacing the term "home equity conversion" with "reverse mortgage" throughout the relevant statutes. The bill defines a reverse mortgage more broadly, allowing for loans not insured by the Federal Housing Administration (FHA), provided they meet state and federal laws, and clarifies that these are non-recourse loans, meaning the lender's recovery is limited to the property's value. It also mandates independent counseling for all borrowers before closing a reverse mortgage loan and prohibits lenders from requiring the purchase of annuities or other financial products as a condition of obtaining a reverse mortgage. The act aims to expand financial tools for senior homeowners while maintaining strong consumer protections, positioning Tennessee as a leader in retirement innovation.