Relating to false, misleading, or deceptive advertising made in connection with a reverse mortgage loan agreement.
The bill introduces significant amendments to the Texas Finance Code by adding Chapter 344, which outlines the conditions under which advertising can be deemed misleading or deceptive. A violation of these provisions is classified as a deceptive trade practice under the Business and Commerce Code, thus making it actionable for consumers. This enforcement mechanism is intended to enhance consumer protection and promote transparency in financial advertising for reverse mortgages.
House Bill 1129 aims to address the issue of false, misleading, or deceptive advertising in connection with reverse mortgage loan agreements. It establishes regulations that prohibit any person from advertising or causing to be advertised statements that could mislead or deceive potential borrowers. The focus of the bill is to protect consumers from potentially harmful or misleading information that could influence their financial decisions regarding reverse mortgages.
While the bill has strong implications for consumer protection, it may also lead to contention among financial institutions that offer reverse mortgage products. Opponents may argue that the bill imposes additional regulatory burdens that could limit their ability to market these financial products effectively. Balancing consumer protection with the interests of financial institutions is likely to be a point of debate among stakeholders as the bill moves forward.