Bill Text: TX HB2632 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to false, misleading, or deceptive advertising made in connection with a reverse mortgage loan agreement.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-13 - Referred to Pensions, Investments & Financial Services [HB2632 Detail]
Download: Texas-2023-HB2632-Introduced.html
| 88R10603 MLH-D | ||
| By: Plesa | H.B. No. 2632 | |
|
|
||
|
|
||
| relating to false, misleading, or deceptive advertising made in | ||
| connection with a reverse mortgage loan agreement. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle B, Title 4, Finance Code, is amended by | ||
| adding Chapter 344 to read as follows: | ||
| CHAPTER 344. REVERSE MORTGAGE LOANS | ||
| Sec. 344.001. FALSE, MISLEADING, OR DECEPTIVE ADVERTISING. | ||
| (a) A residential mortgage loan originator may not, in any manner, | ||
| advertise or cause to be advertised a false, misleading, or | ||
| deceptive statement or representation made to induce a potential | ||
| borrower into applying for or entering into a reverse mortgage loan | ||
| agreement. | ||
| (b) A statement or representation is misleading or | ||
| deceptive under Subsection (a) if the statement or representation | ||
| has the capacity or tendency to mislead or deceive a potential | ||
| borrower, considering: | ||
| (1) the overall impression that the statement or | ||
| representation reasonably creates; and | ||
| (2) the particular type of potential borrower to which | ||
| the statement or representation is directed and whether the | ||
| statement or representation may be reasonably comprehended by that | ||
| potential borrower. | ||
| (c) An advertisement relating to a reverse mortgage made or | ||
| caused to be made by a residential mortgage loan originator is | ||
| considered false, misleading, or deceptive in violation of this | ||
| section if the advertisement: | ||
| (1) represents that: | ||
| (A) a reverse mortgage is a government benefit; | ||
| or | ||
| (B) a reverse mortgage is not a loan; | ||
| (2) represents or implies that: | ||
| (A) the advertisement itself is an official | ||
| document of a governmental entity; or | ||
| (B) the borrower may stay in the home that is the | ||
| subject of the reverse mortgage loan agreement without paying | ||
| taxes, paying insurance premiums, or maintaining the home; or | ||
| (3) contains an image, symbol, or emblem that creates | ||
| the impression that the advertisement is made on behalf of a | ||
| governmental entity. | ||
| (d) This section does not prohibit a residential mortgage | ||
| loan originator from accurately advertising that the residential | ||
| mortgage loan originator is affiliated with the Federal Deposit | ||
| Insurance Corporation or the National Credit Union Association or | ||
| is an equal housing opportunity lender under the Fair Housing Act | ||
| (42 U.S.C. Section 3601 et seq.), including by inclusion or use of | ||
| an image, symbol, or emblem meant to advertise that affiliation or | ||
| status. | ||
| (e) A violation of this section is a deceptive trade | ||
| practice under Subchapter E, Chapter 17, Business & Commerce Code, | ||
| and is actionable under that subchapter, except that Section | ||
| 17.565, Business & Commerce Code, does not apply. | ||
| (f) The commissioner shall adopt rules to implement this | ||
| section. | ||
| SECTION 2. This Act takes effect September 1, 2023. | ||
