House Bill 2382, also known as the Tennessee Reverse Mortgage Innovation Act, amends various sections of the Tennessee Code Annotated to update and clarify the regulations surrounding reverse mortgages. Key changes include the replacement of the term "Home Equity Conversion Mortgage Act" with "Tennessee Reverse Mortgage Innovation Act" and the substitution of "home equity conversion" with "reverse mortgage" in relevant sections. The bill also introduces new definitions and requirements for reverse mortgage loans, including stipulations for lender approval and the necessity for independent counseling prior to closing a loan.

Additionally, the bill removes outdated references to Fannie Mae and HUD guidelines, allowing for more flexibility in reverse mortgage loans while ensuring consumer protections remain intact. It establishes that reverse mortgage loans are non-recourse loans, meaning lenders can only recover the proceeds from the sale of the secured property. The act aims to modernize Tennessee's reverse mortgage framework, aligning it with best practices nationwide and expanding financial options for senior homeowners and homebuyers. The act will take effect upon becoming law.

Statutes affected:
Introduced: 47-30-101, 47-30-102(1)(C), 47-30-102, 47-30-102(4), 47-30-102(6), 47-30-102(7), 47-30-102(8), 47-30-102(11), 47-30-102(12), 47-30-103(b), 47-30-103, 47-30-103(c), 47-30-104, 47-30-107(b)(2), 47-30-107, 47-30-107(b)(3), 47-30-107(b)(4), 47-30-108(a), 47-30-108, 47-30-109(b), 47-30-109, 47-30-115(5), 47-30-115, 47-30-117, 47-30-118, 39-15-509(d)(2)(K), 39-15-509, 45-2-1202(5)(K), 45-2-1202, 45-20-102(9)(D)(iii), 45-20-102, 67-4-409(b)(2), 67-4-409