Maximum Effective Rate of Interest for Home Loans - May 2026
Summary
The Tennessee Department of Financial Institutions announces the maximum effective interest rate for home loans for May 2026 at 10.43% per annum, calculated as four percentage points above the Average Prime Offer Rate (APOR) of 6.43%. The rate is set pursuant to Public Chapter 290 enacted by the Tennessee General Assembly in 2025.
What changed
The Tennessee Commissioner of Financial Institutions has published the maximum effective rate of interest for home loans applicable during May 2026. The rate is set at 10.43% per annum, which equals the APOR (6.43%) plus four percentage points as mandated by Public Chapter 290. The APOR is derived from the Federal Financial Institutions Examination Council data for thirty-year fixed loans.
Affected parties including lenders, mortgage brokers, and financial institutions operating in Tennessee should ensure compliance with this rate ceiling. The notice references federal preemption under P.L. 96-221, which may supersede state usury laws for certain loans made after March 31, 1980. Legal counsel should be consulted to determine applicability to specific lending arrangements.
What to do next
- Monitor for monthly rate updates from TN TDFI
- Ensure home loan interest rates do not exceed 10.43% per annum
- Consult legal counsel regarding federal preemption under the Depository Institutions Deregulation and Monetary Control Act of 1980
Archived snapshot
Apr 8, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
COMMISSIONER GONZALES ANNOUNCES MAXIMUM EFFECTIVE RATE of INTEREST
Tuesday, April 07, 2026 | 09:48am The Commissioner of Financial Institutions hereby announces that the maximum effective rate of interest per annum for home loans as set by the General Assembly in 2025, Public Chapter 290, for the month of May 2026 is 10.43 percent per annum.
The maximum effective rate of interest per annum for home loans shall be set at an amount equal to four (4) percentage points above the average prime offer rate (APOR), as defined in 12 CFR 1026.35, that applies to a thirty-year fixed loan, as published by the Federal Financial Institutions Examination Council (FFIEC), or its successor federal entity. For the most recent APOR statistical data available preceding the date of this announcement, the calculated rate is 6.43 percent.
Persons affected by the maximum effective rate of interest for home loans as set forth in this notice should consult legal counsel as to the effect of the Depository Institutions Deregulation and Monetary Control Act of 1980 (P.L. 96-221 as amended by P.L. 96-399) and regulations pursuant to that Act promulgated by the Federal Home Loan Bank Board. State usury laws as they relate to certain loans made after March 31, 1980, may be preempted by this Act.
Alica Owen
Public Information Officer
Tennessee Department of Financial Institutions
(615) 289-4738
CFR references
Related changes
Get daily alerts for TN TDFI News
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from TN TDFI.
The plain-English summary, classification, and "what to do next" steps are AI-generated from the original text. Cite the source document, not the AI analysis.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when TN TDFI News publishes new changes.