Tennessee passed a bill enacting the Tennessee Reverse Mortgage Innovation Act and adding, amending, and deleting several reverse mortgage provisions. Under the bill, the Home Equity Conversion Mortgage Act was replaced by the Tennessee Reverse Mortgage Innovation Act. Also, several reverse mortgage loan provisions were added, amended, and deleted. Key highlights of the changes include:
- Deleting the definitions “Fannie Mae” and “Fannie Mae Reverse Mortgage Loan”;
- Amending the definition of “Counselor” for a reverse mortgage loan by allowing a reverse mortgage counselor to be approved by the department of financial institutions to satisfy the requirement that a borrower involved in a reverse mortgage loan receive independent counseling prior to closing;
- Adding a prohibition that 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 is not allowed; and
- Removing references to Fannie Mae, deleting references to “home equity conversion mortgage” and substituting it with “reverse mortgage”, and removing several subsections related to Title 47 (Commercial Instruments and Transactions), Chapter 30 (Home Equity Conversion Mortgages).
The bill becomes effective June 28, 2026.
Click to view the TN HB 2382: https://www.tenaco.com/wp-content/uploads/2026/06/TN-HB-2382-05-20-26.pdf
