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~tate of {!Cennessee
PUBLIC CHAPTER NO. 1027
HOUSE BILL NO. 2382
By Representatives Vaughan, Vital, Hardaway
Substituted for: Senate Bill No. 2190
By Senators Stevens, Gardenhire, Bowling
AN ACT to amend Tennessee Code Annotated, Title 39, Chapter 15, Part 5; Title 45,
Chapter 2, Part 12; Title 45, Chapter 20; Title 47, Chapter 30 and Title 67, Chapter 4, Part 4,
relative to reverse mortgages.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 47-30-101, is amended by deleting
"Home Equity Conversion Mortgage Act" and substituting "Tennessee Reverse Mortgage
Innovation Act". •
SECTION 2. Tennessee Code Annotated, Section 47-30-102(1)(C), is amended by
deleting "home equity conversion" and substituting "reverse mortgage".
SECTION 3. Tennessee Code Annotated, Section 47-30-102(7), is amended by deleting
the subdivision.
SECTION 4. Tennessee Code Annotated, Section 47-30-102(8), is amended by deleting
the subdivision and substituting:
(8) "Home equity conversion loan" means a reverse mortgage regulated by HUD;
SECTION 5. Tennessee Code Annotated, Section 47-30-102(11), is amended by
deleting the subdivision and substituting:
(11) "Reverse mortgage" or "reverse mortgage loan'' means a loan for a definite
or indefinite term:
(A) Secured by a mortgage or deed of trust on the principal residence of
the mortgagor;
(8) The proceeds of which are disbursed to the mortgagor in one (1) or
more lump sums, or in equal or unequal installments, either directly by the lender
or the lender's agent;
(C) That requires no repayment until a future time, upon the earliest
occurrence of one (1) or more events specified in the reverse mortgage loan
contract; and
(D) Is labeled clearly on the face of the note and deed of trust or
mortgage, with the:
(i) Name of the loan product;
(ii) Name of the lender or insurer; and
(iii) The statement, "This is a reverse mortgage pursuant to
Tennessee Code Annotated, Title 47, Chapter 3011
;
SECTION 6. Tennessee Code Annotated, Section 47-30-102(12), is amended by
deleting the subdivision.
HB2382
SECTION 7. Tennessee Code Annotated, Section 47-30-104, is amended by deleting
the section and substituting:
(a) A reverse mortgage loan contract must conform to the requirements of this
chapter. A reverse mortgage loan, home equity conversion loan, mortgage, or deed of
trust that fails to comply with this chapter is unenforceable as to all interest, service fees,
and insurance premiums incurred on the loan.
(b) A reverse mortgage loan may, but need not, be insured or guaranteed by a
state or federal agency. Reverse mortgage loans that are not FHA-insured are
authorized under this chapter; provided, that they comply with all provisions of this part
and applicable federal and state law.
(c) A reverse mortgage loan is a non-recourse loan, and the lender's recovery is
limited to the proceeds from the sale or transfer of the secured property.
(d) Prior to closing a reverse mortgage loan, the lender shall receive certification
that all borrowers and necessary loan participants have received independent
counseling from a counselor.
SECTION 8. Tennessee Code Annotated, Section 47-30-107(b)(2), is amended by
deleting ". These fees shall not exceed the monthly service fee or insurance premium permitted
by HUD for participation in the Home Equity Conversion Mortgage Program or by Fannie Mae
for a Fannie Mae Reverse Mortgage Loan".
SECTION 9. Tennessee Code Annotated, Section 47-30-107(b)(3), is amended by
deleting ", which complies with Fannie Mae guidelines or HUD regulations".
SECTION 10. Tennessee Code Annotated, Section 47-30-107(b)(4), is amended by
deleting ", if the transaction is a Fannie Mae Reverse Mortgage Loan of any principal amount
notwithstanding § 47-24-102".
SECTION 11. Tennessee Code Annotated, Section 47-30-108(a}, is amended by
deleting", other than a Fannie Mae Reverse Mortgage Loan,".
SECTION 12. Tennessee Code Annotated, Section 47-30-109(b), is amended by
deleting "listed with HUD or Fannie Mae".
SECTION 13. Tennessee Code Annotated, Section 47-30-115(5), is amended by
deleting ", except that this subdivision (5) shall not apply to any Fannie Mae Reverse Mortgage
Loan".
SECTION 14. Tennessee Code Annotated, Section 47-30-115, is amended by adding
the following as a new subdivision:
(8) Engaging in cross-selling by requiring or soliciting the purchase of an annuity,
insurance policy, or other financial product as a condition of obtaining or authorizing a
reverse mortgage loan.
SECTION 15. Tennessee Code Annotated, Section 47-30-117, is amended by
designating the existing language as subsection (a), and adding the following as a new
subsection:
(b) It is further the intent of the general assembly to modernize this chapter to
align this state with the best practices nationwide by expanding the financial tools
available to senior homeowners and homebuyers and to provide maximum flexibility
while maintaining strong consumer protections, thereby positioning this state as a
national leader in retirement innovation and flexibility.
SECTION 16. Tennessee Code Annotated, Section 47-30-118, is amended by deleting
the section.
SECTION 17. Tennessee Code Annotated, Section 39-15-509(d)(2)(K), is amended by
deleting "home equity conversion mortgage" and substituting "reverse mortgage".
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HB2382
SECTION 18. Tennessee Code Annotated, Section 45-2-1202(5)(K), is amended by
deleting "home equity conversion mortgage" and substituting "reverse mortgage".
SECTION 19. Tennessee Code Annotated, Section 45-20-102(9)(D)(iii), is amended by
deleting the subdivision and substituting:
(iii) A reverse mortgage loan, as defined in the Tennessee Reverse Mortgage
Innovation Act, compiled in title 47, chapter 30;
SECTION 20. Tennessee Code Annotated, Section 67-4-409(b)(2), is amended by
deleting "Home Equity Conversion Mortgage Act, as compiled in title 47, chapter 30" and
substituting "Tennessee Reverse Mortgage Innovation Act, compiled in title 47, chapter 30".
SECTION 21. The Tennessee Code Commission is requested to revise the heading for
Tennessee Code Annotated, Title 47, Chapter 30, to more accurately reflect the changes made
in this act.
SECTION 22. This act takes effect upon becoming law, the public welfare requiring it.
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HOUSE BILL NO. 2382
PASSED: April 20, 2026
C,,1-.~,
CAMERONSEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
RANDYM
SPEAKER OF THE
IOf~ APPROVED this day of ~ 2026
~t._
BILL LEE, GOVERNOREvery fact on this page links to its source, starting with the official bill record.