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A BILL TO BE ENTITLED
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AN ACT
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relating to false, misleading, or deceptive advertising made in |
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connection with a reverse mortgage loan agreement. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
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adding Chapter 344 to read as follows: |
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CHAPTER 344. REVERSE MORTGAGE LOANS |
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Sec. 344.001. FALSE, MISLEADING, OR DECEPTIVE ADVERTISING. |
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(a) A residential mortgage loan originator may not, in any manner, |
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advertise or cause to be advertised a false, misleading, or |
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deceptive statement or representation made to induce a potential |
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borrower into applying for or entering into a reverse mortgage loan |
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agreement. |
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(b) A statement or representation is misleading or |
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deceptive under Subsection (a) if the statement or representation |
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has the capacity or tendency to mislead or deceive a potential |
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borrower, considering: |
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(1) the overall impression that the statement or |
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representation reasonably creates; and |
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(2) the particular type of potential borrower to which |
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the statement or representation is directed and whether the |
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statement or representation may be reasonably comprehended by that |
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potential borrower. |
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(c) An advertisement relating to a reverse mortgage made or |
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caused to be made by a residential mortgage loan originator is |
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considered false, misleading, or deceptive in violation of this |
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section if the advertisement: |
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(1) represents that: |
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(A) a reverse mortgage is a government benefit; |
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or |
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(B) a reverse mortgage is not a loan; |
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(2) represents or implies that: |
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(A) the advertisement itself is an official |
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document of a governmental entity; or |
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(B) the borrower may stay in the home that is the |
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subject of the reverse mortgage loan agreement without paying |
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taxes, paying insurance premiums, or maintaining the home; or |
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(3) contains an image, symbol, or emblem that creates |
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the impression that the advertisement is made on behalf of a |
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governmental entity. |
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(d) This section does not prohibit a residential mortgage |
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loan originator from accurately advertising that the residential |
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mortgage loan originator is affiliated with the Federal Deposit |
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Insurance Corporation or the National Credit Union Association or |
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is an equal housing opportunity lender under the Fair Housing Act |
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(42 U.S.C. Section 3601 et seq.), including by inclusion or use of |
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an image, symbol, or emblem meant to advertise that affiliation or |
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status. |
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(e) A violation of this section is a deceptive trade |
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practice under Subchapter E, Chapter 17, Business & Commerce Code, |
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and is actionable under that subchapter, except that Section |
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17.565, Business & Commerce Code, does not apply. |
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(f) The commissioner shall adopt rules to implement this |
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section. |
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SECTION 2. This Act takes effect September 1, 2023. |