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.

SB 749 changes how Tennessee sets the maximum interest rate for home loans. It replaces the current method (using federal mortgage auction yields and 30-year treasury rates) with the "average prime offer rate" published by federal regulators. The new rule caps the maximum rate at four percentage points above this benchmark, while maintaining an absolute 18% annual limit. This affects all home loan lenders operating in Tennessee, effective July 1, 2025. The bill directly alters the legal calculation for loan interest rates without changing the 18% ceiling.