10 Jun Tennessee Legislative Update
The Tennessee legislature recently amended its laws governing who is entitled to the notice of a sale of real property by way of foreclosure, including owners of obligations secured by deeds of trust, their agents, or nominees. The legislature also recently amended its laws governing financial institutions as well as the Tennessee Residential Lending, Brokerage, and Servicing Act (the “Act”). Both bills are effective July 1, 2015.
TENNESSEE SENATE BILL 619
In the advertisement or notice for foreclosure, each concise description of land must include the corresponding names of the parties interested.
For purposes of a foreclosure, “parties interested” also includes a person or entity named as nominee or agent of the owner of the obligation that is secured by the deed of trust and that is identifiable from information provided in the deed of trust, which must include a mailing address or post office box of the nominee or agent.
TENNESSEE SENATE BILL 1628
Persons regulated and supervised by the Department of Financial Institution’s Compliance Division (the “Department”) will be assessed an annual supervision fee. The Commissioner of the Department of Financial Institutions (the “Commissioner”) will determine an annual budget for the Department, including the amount of the budget attributable to the regulation and examination of the persons regulated by the Compliance Division (the “Division”).
Mortgage loan originators will not be assessed the annual supervision fee, but mortgage loan originators will continue to pay the licensing, renewal, and any other fees required in the Act. The total number of mortgage loan originators licensed with the Department at the end of the previous fiscal year will be multiplied by the annual renewal fee for mortgage loan originators, and the product will be deducted from the Division’s budget. The remaining amount of the Division’s budget will be allocated as described below.
The Commissioner will periodically determine the per diem costs of conducting a routine examination of persons regulated and supervised by the Division. After deducting the amounts referenced above for mortgage loan originators, the remaining budget will be assessed as a supervision fee among all licensed and registered locations based on the relative complexities of examining and regulating each industry.
Payment of the supervision fee will be a condition of licensure or registration renewal. The supervision fee will be nonrefundable and the supervision fee will not be reduced if the license or registration is surrendered, cancelled, revoked, or suspended prior to the expiration of the period for which it was issued.
The supervision fee includes annual licensing and registration fees and the costs for a routine examination or investigation of a licensee or registrant regulated by the Division. In addition to the supervision fee, a licensee or registrant must pay the actual expenses incurred for out-of-state examinations and inspections of books, records, and papers maintained out-of-state. In addition to the supervision fee, the Commissioner may impose a special assessment upon a licensee or registrant for the purpose of recovering costs in excess of those costs normally incurred for conducting a routine examination.
A person who applies for a new license or registration must pay, as a condition of licensure or registration, the same supervision fee for each licensed or registered location as a person holding the same license or registration type has paid as a supervision fee during that fiscal year. If the supervision fee for a fiscal year has not yet been determined, the person applying for a new license or registration must pay, as a condition of licensure or registration, the supervision fee required to obtain the license or registration type in the previous fiscal year, except as provided below.
A person submitting an application to the Division for a new license or registration from July 1, 2015 through September 30, 2015, must pay a supervision fee of $500. Thereafter, the supervision fee will be an amount determined by the Commissioner.
All funds collected by the Division will be used for its administration.
Tennessee Residential Lending, Brokerage, and Servicing Act
The nonrefundable supervision fee described above replaces the nonrefundable license, investigation, and renewal fees.
The Commissioner may establish a biennial license arrangement for the filing of application for licensure renewal. The supervision fee will not be payable for more than 1 year at a time.
A mortgage lender, mortgage loan broker, mortgage loan servicer, or registrant that is investigated or examined from July 1, 2015, through December 31, 2015, must pay to the Commissioner the reasonable and actual expenses of the investigation or examination. After December 31, 2015, the costs for an examination or investigation of licensees or registrants will be assessed as provided above. An unlicensed person subject to the licensing requirements of the Act, that is examined or investigated in accordance with the Act, must pay to the Commissioner the reasonable and actual expenses of the investigation or examination.