meta_id 3126054

On May 5, 2026, the Commissioner of Financial Institutions announced that the maximum effective rate of interest per annum for home loans in Tennessee for June 2026 is 10.32 percent per annum. The maximum effective rate is calculated as four percentage points above the average prime offer rate (APOR), as defined in 12 Code of Federal Regulations (CFR) 1026.35, that applies to a thirty-year fixed loan, as published by the Federal Financial Institutions Examination Council (FFIEC). The APOR statistical data used for this calculation was 6.32 percent, resulting in the announced rate of 10.32 percent. This rate-setting methodology was established by the Tennessee General Assembly in 2025 through Public Chapter 290. The announcement applies to all home loan providers operating in Tennessee and affects the terms under which residential mortgage lending can occur within the state. Lenders and borrowers should note that the Depository Institutions Deregulation and Monetary Control Act of 1980 (Public Law 96-221, as amended by Public Law 96-399) may preempt certain state usury laws for loans made after March 31, 1980. Affected parties are advised to consult legal counsel regarding the implications of federal preemption on state usury regulations and their specific lending or borrowing arrangements. The Tennessee Department of Financial Institutions will announce updated maximum effective rates monthly, with the next announcement expected to follow the same calculation methodology using the most recent available APOR data.