Tennessee Department of Financial Institutions
511 Union Street, Suite 400
Nashville, Tennessee 37219
February 28, 2008
Dear Governor Phil Bredesen and the People of the State of Tennessee:
I am pleased to present to you and our fellow Tennesseans this 33rd Annual Report of the Department of Financial
Institutions for fiscal year 2007.
The Department regulates banks, credit unions, trust companies, business and industrial development corporations, industrial
loan and thrift companies, insurance premium finance companies, mortgage lenders, brokers, servicers and originators; title pledge lenders, check cashers,
deferred presentment services companies and money transmitters.
We play a vital role in regulating and supporting the financial services industry and ensuring that Tennessee financial institutions remain fiscally strong and
comply with governing authority.
The Department’s mission is to ensure a safe and sound system of state-chartered institutions for Tennessee citizens. The condition of our depository institutions
remains good despite challenging economic times. Depository institutions remain well-capitalized, profitable and innovative in their diverse offerings of
products and services. Although we continue to see some consolidation, total net assets continue to increase and the complexity and breadth of operations
continue to grow. The formation of de novo state banks has slowed.
The Department recommends legislation to strengthen the mortgage industry and our regulation through education, criminal background checks and the state’s
participation in a national mortgage licensing system. We would also recommend legislation to allow state chartered credit unions to convert to a state
chartered mutual savings bank.
The subprime mortgage situation is a major issue facing the nation. Relatively speaking, Tennessee’s share of the nationwide subprime market has been small
with most subprime mortgage lending occurring in a few o