Interest Rates - As enacted, removes the weighted average yield of the accepted offers of the Federal National Mortgage Association's current free market system auction and the 30-year treasury yield as the two bases upon which the maximum effective rate of interest on home loans may be set by the commissioner of financial institutions, and replaces them with the average prime offer rate. - Amends TCA Title 45 and Title 47.

This bill changes how Tennessee calculates the maximum interest rate allowed on home loans. It replaces the previous method, which used mortgage auction data and Treasury bond yields, with the average prime offer rate as the new benchmark. Lenders must now set interest rates at four percentage points above this prime rate, with a hard cap of 18% per annum. The law takes effect on July 1, 2025, and applies to all home loans made within the state.