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HB 2382

Mortgages - As introduced, enacts the "Tennessee Reverse Mortgage Innovation Act," which authorizes the use of a counselor approved by the department of financial institutions to satisfy the requirement that a buyer involved in a reverse mortgage loan receive independent counseling prior to closing; makes other changes related to reverse mortgage loans. - Amends TCA 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.

114th Regular Session (2025-2026) Introduced by Kevin Vaughan

Tennessee bill authorizes department-approved counselors to conduct mandatory reverse mortgage counseling, potentially streamlining loans but raising consumer protection and independence concerns.

Enrolled; ready for sig. of H. Speaker.
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Bill Summary · HB 2382

Legislative bill overview

HB 2382 modifies Tennessee's reverse mortgage regulations by allowing department-approved counselors to conduct the mandatory independent counseling that borrowers must complete before closing a reverse mortgage loan. The bill amends multiple sections of Tennessee Code Annotated to implement these changes across financial institutions, lending regulations, and related statutes.

Why is this important

Reverse mortgages are complex financial products used primarily by seniors to access home equity, and independent counseling is a federal requirement designed to protect borrowers from predatory practices and ensure they understand the terms. This change could streamline the lending process and reduce costs by expanding who can provide counseling, but it also potentially narrows the definition of "independent" if department-approved counselors have financial ties to lenders or the mortgage industry.

Potential points of contention

  • Definition of "independent": Approval by the department of financial institutions does not guarantee that counselors are truly independent from lenders; they could potentially have financial incentives to expedite loans
  • Consumer protection standards: The bill doesn't specify what qualifications or standards department-approved counselors must meet, raising questions about consistency in counseling quality and borrower protection
  • Conflict of interest safeguards: Unclear whether the bill includes adequate restrictions preventing counselors from having relationships with lenders, which could compromise their ability to give unbiased advice to vulnerable senior borrowers

Compiled from official sources — confirm details with the bill’s official record.

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