Senate Bill 2190, also known as House Bill 2382, amends various sections of the Tennessee Code Annotated to update and modernize the regulations surrounding reverse mortgages. The bill replaces references to the "Home Equity Conversion Mortgage Act" with the "Tennessee Reverse Mortgage Innovation Act" and makes several specific changes to definitions and requirements related to reverse mortgages. Notably, it introduces a new definition of "reverse mortgage" that outlines the terms and conditions under which such loans operate, including the requirement 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Additionally, the bill removes outdated references to Fannie Mae and HUD guidelines, allowing for more flexibility in the types of reverse mortgage loans that can be offered. It establishes that reverse mortgage loans may be proprietary and not necessarily insured by federal agencies, while also ensuring that lenders must notify the commissioner of their intent to make reverse mortgage loans. The legislation aims to enhance consumer protections while expanding financial options for senior homeowners, positioning Tennessee as a leader in retirement innovation.

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