Committee approves bill to allow online posting of foreclosure notices; press groups warn of reduced visibility

The Senate Commerce and Labor Committee on Tuesday voted 5-3 to advance Senate Bill 7 27, the Modernizing Tennessee Foreclosure Act, as amended, sending the measure to the Judiciary Committee.

The bill, sponsored by Senator Lowe, replaces part of Tennessee’s foreclosure notice framework by permitting a single printed notice while allowing vendors to post foreclosure and postponement notices on a third-party internet site. "This brings [foreclosure notices] into the modern age by adding a requirement that foreclosure notices and notices of postponement be posted online," Senator Lowe told the committee during his presentation.

Supporters, including banking and mortgage industry groups identified by the sponsor, said the bill would expand access to online bidding for foreclosure auctions and reduce reliance on print notice requirements that can be outdated.

Opponents, led by the Tennessee Press Association and local newspaper owners, urged the committee to reject the change or keep stronger print requirements. Mark Millsap, executive director of the Tennessee Press Association, said changing the statutory print requirement from three notices to one "means there will be less transparency for property owners, consumers, newspaper readers, in regard to properties that are being foreclosed on," and warned, "Less people are gonna see the notice." Dave Gould of Main Street Media of Tennessee said many local papers are Tennessee-owned and that the bill risks sending notice revenue out of state.

Committee members pressed the sponsor on several points, including whether newspapers could continue to use their own online platforms for notices and whether postponement postings would be required online. Senator Lowe responded the bill "doesn't prevent newspapers from venturing into providing a service like that" and said the bill adds, rather than removes, the existing postponement-notice requirement.

Senators voting in favor were Reeves, Stevens, Taylor, Watson and Chairman Bailey; Senators Johnson, Sutherland and Yeager voted no. The committee recorded the motion to add amendment drafting code 005265 and then to move the bill as amended to Judiciary.

The bill’s language leaves the definition of a "third-party posting company" unspecified; committee members and witnesses raised concern about how members of the public will find notices posted on unspecified third-party sites and noted that some rural Tennesseans lack reliable internet access. Proponents said the private market can provide distribution services but did not identify specific vendors to the committee.

With the amendment and the committee vote, Senator Lowe will have the opportunity to present the measure in Judiciary.

— Ending note: The committee hearing included public testimony limited by the chair; the bill’s next procedural stop will be the Judiciary Committee if the sponsor pursues it there.