Tennessee Enacts Home Loan Protection Act
After years of heated debate, the Tennessee Home Loan Protection Act has become law. This law protects consumers against some high-cost mortgage loans and the brokers and lenders who make them.
Most traditional mortgage loans have fees of 1 to 2 percent. If fees total more than 5 percent, the new law will trigger stricter regulations and certain fees are capped. The law also protects home owners against some mortgage “flipping,” and high cost loans cannot increase the principle over the course of the loan. Also, payments that are twice as large as regular payments, or balloon payments, are restricted. One of the biggest changes the law introduced is the requirement that high-cost mortgage loans must now include a notice to borrower.
Although many feel the law did not go far enough to protect consumers, it does provide reasonable steps to protect homeowners while limiting restrictions that threaten to curtail subprime lending, the business of making loans available to people with low incomes and spotty credit. If you believe you have been the victim of a predatory lender, please feel free to contact our office.
Author Bio
Jim Higgins, founder of the Higgins Firm, is a seasoned personal injury attorney with deep roots in Nashville, Tennessee. A 4th generation Nashvillian, Jim carries on the legal legacy of his father, a judge for over 30 years. After graduating from the University of Memphis School of Law, Jim’s career began on the other side of the courtroom, defending insurance companies and learning their tactics for minimizing settlements. However, he soon realized his true calling was fighting for the rights of the injured, and for the past several years, he has exclusively represented plaintiffs in personal injury cases.
Since then, his dedication and skill have earned him membership in the prestigious Million Dollar Advocates Forum, an organization limited to attorneys who have secured million and multi-million dollar verdicts and settlements for their clients. Licensed to practice in Tennessee, Kentucky, and Georgia, Jim focuses on personal injury, product liability, medical malpractice, and workers’ compensation cases. His exceptional work has been recognized by his peers, earning him a spot on the Super Lawyers list from 2021 to 2024, a distinction awarded to only a select group of accomplished attorneys in each state.
