On April 28, the governor of Tennessee signed into law HB 908 to amend the maximum effective interest rate for home loans originated in the state. The new law sets the rate at four percentage points above the average prime offer rate. According to the state’s fiscal note, the act removes previous bases such as the Fannie Mae’s auction yield and the 30-year treasury yield, aligning the state law with federal definitions and practices. The act maintains the maximum interest cap at 18 percent per year and will go into effect on July 1.
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