87R3529 MLH-D
By: Lopez H.B. No. 1129
A BILL TO BE ENTITLED
AN ACT
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 person 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) A violation of this section is a deceptive trade
practice under Subchapter E, Chapter 17, Business & Commerce Code,
and is actionable under that subchapter.
SECTION 2. This Act takes effect September 1, 2021.