Tennessee lawmakers seek to raise home loan insurance rate caps with bill
NASHVILLE, Tenn. (WKRN) — A bill that has already passed the Tennessee Senate would effectively raise the maximum interest rate on mortgages.
SB 749/HB 908, brought by Goodlettsville Republican Rep. Johnny Garrett and Kingston Republican Sen. Ken Yager by way of mortgage bankers in Tennessee, would change the index on second mortgages to a 'more modern' index in the Average Prime Offer Rate.
According to Yager, the bill was created with assistance of the Tennessee Commissioner of Financial Institutions and will expand the opportunity for people to have a subordinate loan, such as a home equity loan.
Per the text of the bill, the maximum effective rate of interest on home loans would be set at an amount 'equal to four (4) percentage points above the average prime offer rate' on a 30-year fixed loan. Further, the maximum effective rate of interest per year for home loans would be capped at 18%, the bill reads.
Current law states the maximum interest rate is set at an amount equal to two percentage points above the 'most recent weighted average yield of the accepted offers of the Federal National Mortgage Association's current free market system auction.'
It is restricted, in that it only applies to mortgages in excess of 15 years, which Yager said would be 'good for the economy that we make this change.'
However, the measure received pushback from Democrats, with Nashville Sen. Jeff Yarbro stating the bill as written would actually apply to 'any home loan' with a 15- or 30-year mortgage.
Yarbro said the current mortgage rate in Tennessee is set at 8.5%, but the bill would allow that rate to be as high as 11.5%, which gave him significant pause.
'I am hesitant to do something that opens the door for mortgage rates in the state to be three percentage points higher than what they are currently,' he said on the Senate floor in mid-March.
TN bill would invalidate out-of-state drivers licenses for undocumented immigrants
Sen. Charlane Oliver (D-Nashville) echoed Yarbro's comments, saying while some of her Senate colleagues classified the measure as a 'cleanup' bill, it could have significant unintended consequences for Tennesseans.
'This puts a significant burden on families trying to purchase a home in Tennessee,' she said, noting how larger counties in Tennessee, like Davidson, housing affordability is already an issue, and the bill could lead to double-digit mortgage rates—something not seen in Tennessee since 1994, she added.
Yager reiterated the market fluctuates daily and affected by multiple indexes, so the likelihood of the bill making mortgage rates significantly higher was low. He further reiterated how the bill would make subordinate home loans more available for things like second mortgages or home equity loans.
Memphis Sen. London Lamar said Yager's bill would equate to a 4-point increase, which would fully price out many Tennesseans.
The measure has already passed the House of Representatives unanimously—due to its placement on a consent calendar—and transmitted to the Senate for action. But lawmakers attempted to 'recall' the bill from the Senate, but the motion failed at the end of March.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Nancy Mace said 'due process is for citizens.' Here's who it's really for
In early June 2025, Republican U.S. Rep. Nancy Mace of South Carolina wrote an X post (archived) that read: "Due process is for citizens." Her comment had been viewed more than 2.4 million times as of this writing and had amassed more than 6,500 likes. The same claim has appeared in multiple X posts. In a similar tone, in May 2025, another X user wrote: "Due process is for citizens, not invaders." (X user @NancyMace) In short, due process is the legal principle that the government must follow fair procedures before depriving a person of life, liberty or property. It serves as a safeguard against arbitrary actions by the state, ensuring that people are treated justly under the law. For a more detailed explanation, see our full breakdown in this article on former President Bill Clinton's 1996 immigration law. While Mace's post did not explicitly say that due process protections are, or should be, limited to only U.S. citizens, her replies below the post reinforced that interpretation. However, the U.S. Constitution protects all "persons," not just citizens, under the due-process clauses of the Fifth and 14th amendments. The Supreme Court has repeatedly affirmed that these protections apply to anyone physically present in the United States regardless of citizenship or immigration status. An MSNBC article on the topic similarly concluded that Mace's "implication … that noncitizens don't get that protection" was "incorrect." The South Carolina representative doubled down on her stance in the replies below her post, suggesting that noncitizens should not be entitled to due-process protections in the U.S. For example, when one X user wrote, "The Constitution doesn't say 'only citizens.' Due process applies to persons — that includes non-citizens. That's settled law," Mace replied by saying: "Skip due process coming in, don't expect it going out. Citizens first!" Other replies further suggested she believed only U.S. citizens should be entitled to such protections (archived, archived, archived). (X users @FJBIDEN_22 and @NancyMace) These exchanges were not the first time Mace commented on due process. In late May 2025, she weighed in on the principle in response to a federal judge's decision to block the deportation of eight noncitizens convicted of violent crimes. The day before U.S. District Judge Brian Murphy issued a 17-page order in which he emphasized that "the Court recognizes that the class members at issue here have criminal histories. But that does not change due process," Mace criticized the ruling, telling Fox News (archived): "They didn't want due process on their way in illegally, they shouldn't get due process on their way out." However, the representative's comments about due process contradicted remarks she made about the principle in the past. In February 2023, Mace wrote on X (archived): "Everyone deserves the right to due process. Even those we vehemently oppose." (X user @NancyMace) Snopes has reached out to Mace for comment on whether she maintains that due-process protections should apply only to U.S. citizens and how she reconciles that view with her 2023 statement. We will update this article if we receive a response. The U.S. Constitution's guarantee of due process appears in the Fifth and 14th amendments, both of which state that no person should be deprived "of life, liberty or property, without due process of law." As shown, the language uses "person," not "citizen," with regard to due-process protections. Further, the Supreme Court has repeatedly interpreted that due-process protections apply to everyone within U.S. borders regardless of citizenship or immigration status. In Shaughnessy v. United States ex rel Mezei (1953) the Court emphasized (Page 212) that "aliens who have once passed through [U.S.] gates, even illegally, may be expelled only after proceedings conforming to traditional standards of fairness-encompassed in due process of law." Similarly, in cases such as Zadvydas v. Davis (2001) and earlier decisions dating back more than a century, the Supreme Court made clear that the government cannot detain or deport people arbitrarily. In the 2001 case, the Court underscored that "the Due Process Clause applies to all persons within the United States, including aliens, whether their presence is lawful, unlawful, temporary, or permanent." In simple words, noncitizens must be given fair procedures, such as notice or a "credible fear interview," before being deprived of their liberty. The Supreme Court expressed the same view in the case of Reno v. Flores (1993), stating: "It is well established that the Fifth Amendment entitles aliens to due process of law in deportation proceedings." This was not the first time Snopes addressed a claim regarding Mace. For instance, in late May 2025, we investigated a rumor that she ordered staffers to create burner accounts to promote her online. Meanwhile, earlier in June 2025, we also fact-checked a rumor about whether the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, signed by Clinton, allowed deportation without due process. "327K Views · 15K Reactions | Rep. Nancy Mace (R-SC) Responds to Arguments That Illegal Immigrants Convicted of Heinous Crimes Deserve Due Process after a Judge Blocks a Deportation Flight to South Sudan | 'They Didn't Want Due Process on Their Way in Illegally, They Shouldn't Get Due Process on Their Way Out.' Rep. Nancy Mace (R-SC) Responds to Arguments... | by Fox News | Facebook." 2022, Accessed 6 June 2025. "U.S. Constitution - Fifth Amendment | Resources | Constitution Annotated | | Library of Congress." 15 Dec. 1791, Constitution Annotated. "U.S. Constitution - Fourteenth Amendment | Resources | Constitution Annotated | | Library of Congress." 9 July 1868, Deng, Grace. "Did Nancy Mace Order Staffers to Create Burner Accounts to Promote Her Online? Here's What We Know." Snopes, 30 May 2025, Accessed 6 June 2025. Dunbar, Marina. "Court Halts Trump Administration's Effort to Send Eight Men to South Sudan." The Guardian, The Guardian, 23 May 2025, Gabbatt, Adam. "Group Stranded with Ice in Djibouti Shipping Container after Removal from US." The Guardian, The Guardian, 6 June 2025, Accessed 6 June 2025. " 2025, Accessed 6 June 2025. "Reno v. Flores, 507 U.S. 292 (1993)." Justia Law, Rubin, Jordan. "Due Process Is Not Limited to Citizens, Contrary to Nancy Mace's Claim." MSNBC, 4 June 2025, Accessed 6 June 2025. Wrona, Aleksandra. "Bill Clinton Did Not Sign Law in 1996 Allowing Deportation without Due Process." Snopes, 5 June 2025, Accessed 6 June 2025. "Zadvydas v. Davis, 533 U.S. 678 (2001)." Justia Law,
Yahoo
22 minutes ago
- Yahoo
Poll: Majority of Democrats give thumbs-down to their leaders in Congress
Most Democrats disapprove of how their party's lawmakers in Congress are handling their jobs, according to a new national poll. Fifty-three percent of Democrats questioned in a Quinnipiac University survey released Wednesday gave their party's congressional members a thumbs-down, while 41% approved of their performance. According to the poll, conducted June 5-8, just 21% of all voters approved of the way Democrats in Congress were handing their jobs, with seven in ten disapproving. Head Here For The Latest Fox News Polling The 21% approval is the same as in Quinnipiac's February national poll, matching "an all-time low since Quinnipiac University first asked this question of registered voters in March 2009." The survey indicates 79% of GOP voters approve of the way congressional Republicans are handling their job, with 13% disapproving. Read On The Fox News App Where Trump Stands In Fox News Polling 100 Days Into His Second Term Among all voters, 32% approved of how GOP congressional members were performing their duties, while just over six in ten disapproved. Overall approval for Republicans in Congress has dropped eight points since Quinnipiac's February poll, with disapproval jumping nine points. The Democratic Party has been in the political wilderness since November's elections, when Republicans won back control of the White House and the Senate and defended their fragile House majority. And Republicans made gains among Black, Hispanic and younger voters, all traditional members of the Democratic Party's base. Since President Donald Trump's return to power earlier this year, an increasingly energized base of Democrats is urging party leaders to take a stronger stand in pushing back against the president's sweeping and controversial agenda during the opening months of his second administration. And their anger is directed not only at Republicans, but at Democrats they feel aren't vocal enough in their opposition to Trump. And that's fueled a plunge in the Democratic Party's favorable ratings, which have hit historic lows in several surveys the past couple of months. The new poll from Quinnipiac also indicates a decline in Trump's approval ratings among voters nationwide. Thirty-eight percent of those questioned in the survey said they approve of the way the president is handling his duties, down three points from Quinnipiac's early April poll. Fifty-four percent in the new poll gave Trump a thumbs-down for his handling of his job as president, down one point from the April survey. Trump's approval ratings were mostly above water as he returned to the White House in late January, but his numbers soon slid underwater in many national surveys and remain in negative territory nearly five months into his second article source: Poll: Majority of Democrats give thumbs-down to their leaders in Congress
Yahoo
22 minutes ago
- Yahoo
Senator Markey announces plans to file amendment on AI regulation
BOSTON (WWLP) – State Senator Ed Markey (D-Mass.) has announced that he intends to file an amendment on AI regulation. Senator Markey said he plans to file an amendment to the Senate reconciliation bill to block Republicans' attempt to prevent states from regulating AI in the next ten years. Senators in both parties have expressed an interest in regulating artificial intelligence. Car dealership aids relief at Baystate Children's Hospital 'Despite the overwhelming opposition to their plan to block states from regulating artificial intelligence for the next decade, Republicans are refusing to back down on this irresponsible and short-sighted provision,' said Senator Markey. Last Tuesday, the senator delivered remarks on the Senate floor opposing the reconciliation bill passed in the House. He also took part in a virtual roundtable last week with advocates to discuss the ban's impact on communities throughout the United States. 'I plan to file an amendment to strip this dangerous provision from Republicans' 'Big Beautiful Bill,'' Markey said. 'Republicans should be prepared to vote on this outrageous policy and explain to their constituents why they are preventing their state leaders from responding to the harms caused by this new and evolving technology.' WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
