Tennessee General Assembly· SB 749Companion House Bill substituted

Interest Rates - As enacted, removes the weighted average yield of the accepted offers of the Federal National Mortgage Association's current free market system auction and the 30-year treasury yield as the two bases upo, the official text

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~tate of utennessee

PUBLIC CHAPTER NO. 290

HOUSE BILL NO. 908
By Representative Garrett
Substituted for: Senate Bill No. 749

By Senator Yager
AN ACT to amend Tennessee Code Annotated, Title 45 and Title 47, relative to interest
on home loans.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 47-15-102, is amended by deleting
the section and substituting:

(a) Except as provided in subsection (b), the maximum effective rate of interest
per annum for home loans shall be set at an amount equal to four (4) percentage points
above the average prime offer rate, as defined in 12 CFR 1026.35, that applies to a
thirty-year fixed loan, as published by the federal financial institutions examination
council, or its successor federal entity.

(b) The maximum effective rate of interest per annum for home loans shall not
exceed eighteen percent (18%) per annum.
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.
HOUSE BILL NO. 908

PASSED: April 7, 2025

CAMERO~XTON,SPEAKER
HOUSE OF REPRESENTATIVES

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\ RANDY MC*LLy

SPEAKER OF THE SENATE

{¼::ti/ :J.4-fL APPROVED this 2025
day of

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BILL LEE, GOVERNOR

Every fact on this page links to its source, starting with the official bill record.