§ 47-30-102. Chapter Definitions
As used in this chapter, unless the context otherwise requires: “Authorized lender” or “lender” means: A bank, savings and loan association, savings bank, savings institution, or credit union chartered under the laws of the United States or of Tennessee; The Tennessee housing development agency (THDA); provided, that such agency has authority by THDA board resolution […]
§ 47-30-103. Authorized Lenders — Designation — Application
No person, firm, or corporation shall engage in the business of making reverse mortgage loans, unless such person, firm, or corporation is an authorized lender. The Tennessee housing development agency, and any bank, savings institution, or credit union, shall be designated an authorized lender by providing notice, not less than thirty (30) days prior to […]
§ 47-30-104. Compliance — Noncomplying Loans Unenforceable — Counseling
No authorized lender shall issue a reverse mortgage loan contract unless it complies with all requirements for participation in HUD’s Home Equity Conversion Mortgage Program (or other similar federal reverse mortgage loan program from time to time created) and is insured by the federal housing administration or other similar federal agency or is a Fannie […]
§ 47-30-105. Contract for the Payment of Interest
Notwithstanding any other law to the contrary, the parties to a reverse mortgage loan may contract for the payment of interest at a rate which does not exceed the rate permitted for home loans under chapter 15 of this title. Interest shall be deferred until the earliest occurrence of one (1) or more events specified […]
§ 47-30-106. Contract May Require Borrower to Pay Certain Taxes, Premiums and Assessments
A reverse mortgage loan contract may provide that it is the primary obligation of the borrower to pay some or all of the property taxes, hazard insurance premiums, private or federal mortgage insurance premiums, and assessments, in a timely manner, and that the failure of the borrower to make these payments and to provide evidence […]
§ 47-30-107. Fees — Calculation of Outstanding Loan Balance — Prepayment
If a reverse mortgage loan contract allows for a change in the payments or payment options, the lender may charge a reasonable fee when payments are recalculated. The reverse mortgage loan contract may provide for: A monthly service fee; A fee for mortgage insurance premiums, which may be collected monthly or in advance. These fees […]
§ 47-30-108. Amount Owed by Borrower When Loan Is Due — Enforcement of Debt
When a reverse mortgage loan, other than a Fannie Mae Reverse Mortgage Loan, becomes due, if the borrower mortgaged one hundred percent (100%) of the full value of the house, then the amount owed by the borrower shall not be greater than: The fair market value of the house, minus sale costs; or The outstanding […]
§ 47-30-109. Provision of Information to the Commissioner
On forms prescribed by the commissioner, all authorized lenders shall provide all of the following information to the commissioner for dissemination to all counselors who provide counseling to prospective reverse mortgage borrowers: The borrower’s rights, obligations, and remedies with respect to the borrower’s temporary absence from the home, late payments by the lender, and payment […]