meta_id 3205947

On June 2, 2026, the Tennessee Department of Financial Institutions (DFI) announced the maximum effective rate of interest per annum for home loans applicable in July 2026. The Commissioner of Financial Institutions set the maximum effective rate at 10.52 percent per annum. The maximum effective rate is calculated by adding four percentage points above the average prime offer rate (APOR), as defined in 12 CFR 1026.35, that applies to a thirty-year fixed loan. The APOR is published by the Federal Financial Institutions Examination Council (FFIEC) or its successor federal entity. For the most recent APOR statistical data available preceding the announcement, the calculated rate was 6.52 percent, resulting in the 10.52 percent maximum effective rate. This announcement implements Public Chapter 290, enacted by the Tennessee General Assembly in 2025, which established the methodology for determining the maximum effective rate of interest for home loans. The rate applies to home loans made in Tennessee during July 2026. Persons affected by this maximum effective rate should consult legal counsel regarding the application of the Depository Institutions Deregulation and Monetary Control Act of 1980 (P.L. 96-221 as amended by P.L. 96-399) and related federal regulations. State usury laws applicable to certain loans made after March 31, 1980, may be preempted by federal law under this Act. REFERENCES: Tennessee Department of Financial Institutions News Release, June 2, 2026: https://www.tn.gov/financial/news