| 1 | 1 | | 87R3529 MLH-D |
|---|
| 2 | 2 | | By: Lopez H.B. No. 1129 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to false, misleading, or deceptive advertising made in |
|---|
| 8 | 8 | | connection with a reverse mortgage loan agreement. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
|---|
| 11 | 11 | | adding Chapter 344 to read as follows: |
|---|
| 12 | 12 | | CHAPTER 344. REVERSE MORTGAGE LOANS |
|---|
| 13 | 13 | | Sec. 344.001. FALSE, MISLEADING, OR DECEPTIVE ADVERTISING. |
|---|
| 14 | 14 | | (a) A person may not, in any manner, advertise or cause to be |
|---|
| 15 | 15 | | advertised a false, misleading, or deceptive statement or |
|---|
| 16 | 16 | | representation made to induce a potential borrower into applying |
|---|
| 17 | 17 | | for or entering into a reverse mortgage loan agreement. |
|---|
| 18 | 18 | | (b) A statement or representation is misleading or |
|---|
| 19 | 19 | | deceptive under Subsection (a) if the statement or representation |
|---|
| 20 | 20 | | has the capacity or tendency to mislead or deceive a potential |
|---|
| 21 | 21 | | borrower, considering: |
|---|
| 22 | 22 | | (1) the overall impression that the statement or |
|---|
| 23 | 23 | | representation reasonably creates; and |
|---|
| 24 | 24 | | (2) the particular type of potential borrower to which |
|---|
| 25 | 25 | | the statement or representation is directed and whether the |
|---|
| 26 | 26 | | statement or representation may be reasonably comprehended by that |
|---|
| 27 | 27 | | potential borrower. |
|---|
| 28 | 28 | | (c) A violation of this section is a deceptive trade |
|---|
| 29 | 29 | | practice under Subchapter E, Chapter 17, Business & Commerce Code, |
|---|
| 30 | 30 | | and is actionable under that subchapter. |
|---|
| 31 | 31 | | SECTION 2. This Act takes effect September 1, 2021. |
|---|