Tennessee Servicing Reference Guide
- Kacey Olson
| Citation | Topic | Requirement |
| Tenn. Code Ann. §35-5-118(e) | Deficiency Judgment | (d) (1) Any action for a deficiency judgment under this section shall be brought not later than the earlier of:
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| Home Equity Conversion Mortgage Act / Tenn. Code Ann. §47-30-110(a) | Disclosure of Lender's Employee or Agent | At the closing of the reverse mortgage loan, the lender must provide to the borrower the name of the lender's employee or agent who has been designated specifically to respond to inquiries concerning reverse mortgage loans. This information must be provided by the lender to the borrower at least annually, and whenever the information concerning the designated employee or agent changes. |
| Home Equity Conversion Mortgage Act / Tenn. Code Ann. §47-30-113 | Intent to Initiate Foreclosure Proceedings Notice (Reverse Mortgage) | When a borrower's obligation to repay the reverse mortgage loan is triggered under §47-30-112, in addition to all rights conferred upon owners and borrowers under title 35, chapter 5, the lender must give the borrower not less than sixty (60) days' notice of its intent to initiate foreclosure proceedings. If the contract so provides, interest will continue to accrue during the 60-day period. |
| TN Industrial Loan and Thrift Companies Act | Tenn. Code Ann. §45-5-403(a) | Late Payment Fees | (a) No registrant under this chapter has the power to charge loan charges other than, or in amounts greater than, the following: (4) Registrants may also charge a handling or delinquent charge of five cents (5cent(s)) for each default in the payment of each one dollar ($1.00), or fraction thereof, or fifteen dollars ($15.00), whichever is greater, at the time any payment on any loan made hereunder becomes past due for a period of five (5) or more days; provided, that the charge shall not be collected more than once for the same default |
| Tenn. Code Ann. §35-5-117 | Notice of Right to Foreclose | |
| Judicial or Trust Sales / Tenn. Code Ann. §35-5-101; 102; & 103 | Notice of Sale - Judicial foreclosure | The Notice of Sale must be published at least 1 time in a newspaper published in the county where the sale is to be made. The publication must be at least 20 days prior to the sale. However, this requirement will not be construed to apply to any notice published in accordance with any contract entered into by the parties, and expressed in a mortgage, deed of trust or other legal instruments. If no newspaper is published in the county in which the land is to be sold, the advertisement in a newspaper is not required, unless ordered by a court. However, if the advertisement cannot be made in a newspaper, the officer must make publication of the sale for 30 days by written notices posted in at least 5 of the most public places in the county, one of which must be the courthouse door, and another in the neighborhood of the defendant, in the civil district where the land is located. Subsequently and prior to the date of publication of the Notice of Sale, a copy of the notice must be sent to the debtor. The notice must be sent by registered or certified mail, return receipt requested to the mailing address of the property and the last known mailing address of the debtor. If at least 30 days prior to the publication date the debtor provides an address to the creditor designated for the purpose of receiving notices, then the creditor must send the copy to such address. In addition, prior to the date of publication of the Notice of Sale, a copy of the notice must be sent to any co-debtors at the last known mailing address of the co-debtor. If at least 30 days prior to the publication date the co-debtor provides an address to the creditor designated for the purpose of receiving notices, then the creditor must send the copy to such address. |
| Sale on Execution / Tenn. R. Civ. P. Rule 69.07(4); Tenn. Code Ann. §26-5-101 | Notice of Sale - Non-judicial foreclosure | Prior to a foreclosure sale, a Notice of Sale must be provided. The Notice of Sale must: (1) describe the realty (including a street address if available); and (2) state the time, place, and terms of the sale. The officer making a levy on land must publish such sale at least 3 different times in a newspaper published in the county where the sale is to be made. The first publication must be at least 20 days prior to the sale. If no newspaper is published in the county in which the land is to be sold, the advertisement in a newspaper, unless ordered by court, is dispensed with and such land may be sold. In addition, if the defendant is in actual possession and occupation of the land levied on, the officer having the execution must, serve the defendant with written notice at least 20 days prior to the sale. The notice must state that the execution is levied on the land and the time and place of sale. (e) In any sale of land to foreclose a deed of trust, mortgage, or other lien securing the payment of money or other thing of value or under judicial orders of process, the trustee or other party that sells the property shall send to the debtor and any co-debtor a copy of the notice required in § 35-5-104. The notice shall be sent on or before the first date of publication provided in subsection (b) by registered or certified mail, return receipt requested. |
| Home Loan Protection Act / Tenn. Code Ann. §45-20-104(b) | Right to Cure Default Notice (High-Cost Home Loan) | Not less than thirty (30) days prior to publishing notice of foreclosure as provided in §35-5-104, or commencing an action for judicial foreclosure, a notice of the right to cure the default shall be sent to the borrower. |
| Home Loan Protection Act / Tenn. Code Ann. §45-20-104(b) | Right to Cure Default Notice (High-Cost Home Loan) | Not less than thirty (30) days prior to publishing notice of foreclosure as provided in §35-5-104, or commencing an action for judicial foreclosure, a notice of the right to cure the default shall be sent to the borrower. |
| Home Equity Conversion Mortgage Act / Tenn. Code Ann. §47-30-110(b) | Statement of Account | On an annual basis and when the loan becomes due, the lender must issue to the borrower, without charge, a statement of account regarding the activity of the mortgage for the preceding calendar year, or for the period since the last statement of account was provided. The statement must include all of the following information for the preceding year: (1) the outstanding balance of the loan at the beginning of the statement period; (2) disbursements to the borrower; (3) the total amount of interest added to the outstanding balance of the loan; (4) any property taxes, insurance premiums, or assessments paid by the lender; (5) payments made to the lender; (6) the total mortgage balance owed to date; and (7) the remaining amount available to the borrower in reverse mortgage loans wherein proceeds have been reserved to be disbursed in 1 or more lump sum amounts. |
| Tenn. Code Ann. §26-1-111 | Special Rules for Service Members | (a) Notwithstanding any provision of law to the contrary, if a member of a reserve or Tennessee national guard unit entered into a mortgage or deed of trust for the purchase of a home, or a contract for the purchase of a motor vehicle, and the person is subsequently called into active military service of the United States, as defined in § 58-1-102, and is stationed outside the United States during hostilities, then any provision of the contract or mortgage or deed of trust providing for foreclosure on the property or repossession of the motor vehicle shall be suspended until ninety (90) days following the military personnel's return to this state. |
| Mortgage Lending, Loan Servicing and Loan Brokering Rules / Tenn. Comp. R. & Regs. 0180-17-.03 | Transferor of Servicing Rights Disclosure | A transferor of servicing rights under a mortgage loan must provide the mortgagor a written notice of the transfer of servicing rights. The notice must specify the name and address to which future payments are to be made, and must be mailed or delivered to the mortgagor at least 10 calendar days before the first payment affected by the notice is due. |
| Residential Lending, Brokerage and Servicing Act / Tenn. Code Ann. §45-13-209 | Written Request | Upon written request from a mortgagor, the holder of a residential mortgage loan must deliver a statement of the mortgagor's account within 14 days from the receipt of the written request. The statement must show the date and amount of all payments credited to the account within the previous 12-month period and the total unpaid balance. No more than 2 statements will be required in any 12-month period. If the holder of a residential mortgage loan forwards to the mortgagor an annual payment and escrow analysis, or other such analysis, the submission of the analysis to the mortgagor will constitute a statement of the mortgagor's account. |