Tennessee Legislative Update

Tennessee Legislative Update

The Tennessee legislature recently amended its laws related to licensees under the Mortgage Lender Licensing Act and the Industrial Loan and Thrift Companies Act, effective July 1, 2017.

 

Tennessee Senate Bill 1202

 

The requirement for each mortgage lender licensee to file an annual report with the Commissioner of Financial Institutions (“Commissioner”) giving information that the Commissioner may reasonably require concerning the business and operations during the preceding calendar year of the licensee has been deleted.

 

A certificate of registration issued under the Industrial Loan and Thrift Companies Act expires on March 31.  A registrant submitting an application for renewal of a certificate of registration expiring on March 31, 2018, must pay the supervision fee.  The completed renewal application and payment must be sent to the Department of Financial Institutions on or before March 1, 2018. A renewal certificate of registration with a beginning effective date of April 1, 2018, expires on December 31, 2018.

 

In addition to any other powers imposed upon the Commissioner by law, the Commissioner is authorized to require persons subject to the Industrial Loan and Thrift Companies Act to be registered through a multi-state automated licensing system.  Applicants for and holders of registrations must pay all costs associated with submitting an application or transitioning a registration to a multi-state automated licensing system, as well as all costs associated with maintaining and renewing any registration issued by the Commissioner on a multi-state automated licensing system.

 

In order to promote more effective regulation and reduce regulatory burden through supervisory information sharing:

  • The requirements under any federal or state law regarding the privacy or confidentiality of any information or material provided to a multi-state automated licensing system, and any privilege arising under federal or state law, including the rules of any federal or state court, with respect to such information or material, continue to apply to the information or material after it has been disclosed to a multi-state automated licensing system.  The information or material may be shared with all state and federal regulatory officials with consumer finance industry oversight authority without the loss of privilege or confidentiality protections provided by federal or state law.
  • The Commissioner may enter into agreements or sharing agreements with other governmental agencies, the Conference of State Bank Supervisors, or other associations representing governmental agencies, as established by rule, regulation, or order of the Commissioner;
  • Information or material that is subject to a privilege or confidentiality protection is not subject to:
    • Disclosure under any federal or state law governing disclosure to the public information held by an officer or agency of the federal government or the respective state; or
    • Subpoena or discovery or admission into evidence in any private civil action or administrative process, unless the person to whom such information or material pertains, in the person’s discretion, waives any applicable privilege held by a multi-state automated licensing system, in whole or in part;
  • The above provisions supersede any inconsistent provisions pertaining to the records open to public inspection and does not apply to information or material relating to publicly adjudicated disciplinary and enforcement actions against persons subject to the Industrial Loan and Thrift Companies Act that is included in a multi-state automated licensing system for access by the public.