Tennessee House Bill HB0489

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/23
• Refer: 2/1/23
• Refer: 2/7/23
• Refer: 2/14/23
• Chaptered: 3/23/23
• Passed: 3/23/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 45 and Title 66, relative to financial institutions.

Impact

The legislative changes proposed by HB 0489 are significant as they modify existing state law regarding the operations and obligations of financial institutions in Tennessee. By allowing state trust institutions to bypass public notice requirements for establishing new offices, the bill aims to reduce bureaucratic hurdles. Moreover, permitting the collection of fees from borrowers for costs related to record-keeping may impact borrowing practices and the overall financial landscape within the state, potentially leading to increased operational flexibility for trust institutions.

Summary

House Bill 0489 amends the Tennessee Code Annotated, specifically focusing on financial institutions. A core provision of the bill modifies requirements around the publication of public notice for state trust institutions when establishing new trust offices. Additionally, the bill changes language regarding the assessment of fees from borrowers related to mortgage debt payments and the costs associated with maintaining records of these payments. This aims to streamline processes in managing mortgages and trust services, enhancing operational efficiency for financial institutions.

Sentiment

Overall, the sentiment surrounding HB 0489 appears favorable among legislative members who support the modernization of financial regulations. Advocates argue that the bill will promote efficiency in financial operations while potentially attracting more business to Tennessee's financial sector. However, there are concerns raised regarding transparency and the implications of easing such requirements, which could affect consumer rights and protections.

Contention

Notable points of contention involve the balancing act between operational efficiency for financial institutions and safeguarding consumer protections. Opponents may argue that the lack of public transparency required by eliminating public notice could obscure critical information from potential borrowers. Moreover, the ability to assess fees for mortgage-related processing could lead to increased costs for consumers, raising concerns about financial fairness and accountability in the lending process.