A bill before the Tennessee General Assembly that would have barred Notary Signing Agents from handling the signings of some home loans has been withdrawn by its sponsor, preserving the role of Notaries in the real estate loan signing process.
HB 68, introduced by Rep. G.A. Hardaway of Memphis, sought to amend the Tennessee Home Loan Protection Act (THLPA) to require the closing of certain types of home loans, such as refinances and home equity loans, to be supervised by an attorney. Hardaway did not disclose the reason for his withdrawal.
The legislation potentially could have opened the door to making Tennessee an attorney-only closing state in those transactions covered under the THLPA. Delaware, Georgia, Massachusetts, South Carolina, Vermont and West Virginia have banned nonattorney real estate closings.
A recent North Carolina State Bar revision reaffirmed the role that Notary Signing Agents play in the state’s real estate loan signings.