| 1 | 1 | | 88R10603 MLH-D |
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| 2 | 2 | | By: Plesa H.B. No. 2632 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to false, misleading, or deceptive advertising made in |
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| 8 | 8 | | connection with a reverse mortgage loan agreement. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subtitle B, Title 4, Finance Code, is amended by |
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| 11 | 11 | | adding Chapter 344 to read as follows: |
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| 12 | 12 | | CHAPTER 344. REVERSE MORTGAGE LOANS |
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| 13 | 13 | | Sec. 344.001. FALSE, MISLEADING, OR DECEPTIVE ADVERTISING. |
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| 14 | 14 | | (a) A residential mortgage loan originator may not, in any manner, |
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| 15 | 15 | | advertise or cause to be advertised a false, misleading, or |
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| 16 | 16 | | deceptive statement or representation made to induce a potential |
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| 17 | 17 | | borrower into applying for or entering into a reverse mortgage loan |
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| 18 | 18 | | agreement. |
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| 19 | 19 | | (b) A statement or representation is misleading or |
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| 20 | 20 | | deceptive under Subsection (a) if the statement or representation |
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| 21 | 21 | | has the capacity or tendency to mislead or deceive a potential |
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| 22 | 22 | | borrower, considering: |
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| 23 | 23 | | (1) the overall impression that the statement or |
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| 24 | 24 | | representation reasonably creates; and |
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| 25 | 25 | | (2) the particular type of potential borrower to which |
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| 26 | 26 | | the statement or representation is directed and whether the |
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| 27 | 27 | | statement or representation may be reasonably comprehended by that |
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| 28 | 28 | | potential borrower. |
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| 29 | 29 | | (c) An advertisement relating to a reverse mortgage made or |
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| 30 | 30 | | caused to be made by a residential mortgage loan originator is |
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| 31 | 31 | | considered false, misleading, or deceptive in violation of this |
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| 32 | 32 | | section if the advertisement: |
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| 33 | 33 | | (1) represents that: |
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| 34 | 34 | | (A) a reverse mortgage is a government benefit; |
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| 35 | 35 | | or |
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| 36 | 36 | | (B) a reverse mortgage is not a loan; |
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| 37 | 37 | | (2) represents or implies that: |
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| 38 | 38 | | (A) the advertisement itself is an official |
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| 39 | 39 | | document of a governmental entity; or |
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| 40 | 40 | | (B) the borrower may stay in the home that is the |
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| 41 | 41 | | subject of the reverse mortgage loan agreement without paying |
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| 42 | 42 | | taxes, paying insurance premiums, or maintaining the home; or |
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| 43 | 43 | | (3) contains an image, symbol, or emblem that creates |
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| 44 | 44 | | the impression that the advertisement is made on behalf of a |
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| 45 | 45 | | governmental entity. |
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| 46 | 46 | | (d) This section does not prohibit a residential mortgage |
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| 47 | 47 | | loan originator from accurately advertising that the residential |
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| 48 | 48 | | mortgage loan originator is affiliated with the Federal Deposit |
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| 49 | 49 | | Insurance Corporation or the National Credit Union Association or |
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| 50 | 50 | | is an equal housing opportunity lender under the Fair Housing Act |
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| 51 | 51 | | (42 U.S.C. Section 3601 et seq.), including by inclusion or use of |
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| 52 | 52 | | an image, symbol, or emblem meant to advertise that affiliation or |
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| 53 | 53 | | status. |
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| 54 | 54 | | (e) A violation of this section is a deceptive trade |
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| 55 | 55 | | practice under Subchapter E, Chapter 17, Business & Commerce Code, |
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| 56 | 56 | | and is actionable under that subchapter, except that Section |
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| 57 | 57 | | 17.565, Business & Commerce Code, does not apply. |
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| 58 | 58 | | (f) The commissioner shall adopt rules to implement this |
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| 59 | 59 | | section. |
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| 60 | 60 | | SECTION 2. This Act takes effect September 1, 2023. |
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