Prohibited Acts

  1. Law
  2. Tennessee Code
  3. Commercial Instruments and Transactions
  4. Home Equity Conversion Mortgages
  5. Prohibited Acts

Checkout our iOS App for a better way to browser and research.

Reverse mortgage lenders are prohibited from engaging in any of the following acts in connection with the making, servicing, or collecting of a reverse mortgage loan:

  1. Misrepresenting material facts, making false promises, or engaging in a course of misrepresentation through agents or otherwise;
  2. Failing to disburse funds in accordance with the terms of the reverse mortgage loan contract or other written commitment;
  3. Improperly refusing to issue a release of a mortgage;
  4. Engaging in any action or practice that is unfair or deceptive, or that operates a fraud on any person;
  5. Contracting for or receiving shared appreciation, except that this subdivision (5) shall not apply to any Fannie Mae Reverse Mortgage Loan;
  6. Closing a reverse mortgage loan without receiving certification from a counselor that the borrower has received counseling on the advisability of a reverse mortgage loan and the appropriate reverse mortgage loan for the borrower; or
  7. Failing to comply with this chapter.


Download our app to see the most-to-date content.