Tenn. Comp. R. & Regs. 0180-12-.12 - REAL ESTATE LOANS

Current through March 20, 2022

(1) One to Four Family - Loan to value shall be a maximum of 95% of all real property which constitutes home property or primarily residential property with at least one unit occupied or to be occupied by the borrower. Loan to value of 91-95% shall carry private mortgage insurance from a "qualified private insurer" which is licensed to do business in this state and approved by FNMA or FHLMC, or establish a specific reserve.
(2) Acquisition and Development - Real estate loans to finance the acquisition and development of land into building lots or sites for home property or primarily residential property shall not exceed 75% of value. Real estate loans for acquisition and development of building lots or sites for the construction of single family dwellings shall not exceed 80% of value.
(3) Construction - Real estate loans to finance the construction of a home or other primarily residential property shall not exceed 80% of value.
(4) Commercial - Real estate loans on other improved real estate not specifically home property shall not exceed 80% of value, unless insured by an approved mortgage insurance company, the United States of America, any state or instrumentality of either.
(5) Unimproved Property - No association shall make a loan to exceed 2/3 of value or invest more than 5% of assets in this type loan.

Notes

Tenn. Comp. R. & Regs. 0180-12-.12
Original rule certified June 10, 1974. Repeal and new rule filed June 30, 1980; effective September 15, 1980. Transferred from the Department of Commerce and Insurance by Executive Order Number 38; effective February 11, 1983.

Authority: T.C.A. ยงยง 45-3-402 and 45-3-701.

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