88R10603 MLH-D
By: Plesa H.B. No. 2632
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 residential mortgage loan originator 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) An advertisement relating to a reverse mortgage made or
caused to be made by a residential mortgage loan originator is
considered false, misleading, or deceptive in violation of this
section if the advertisement:
(1) represents that:
(A) a reverse mortgage is a government benefit;
or
(B) a reverse mortgage is not a loan;
(2) represents or implies that:
(A) the advertisement itself is an official
document of a governmental entity; or
(B) the borrower may stay in the home that is the
subject of the reverse mortgage loan agreement without paying
taxes, paying insurance premiums, or maintaining the home; or
(3) contains an image, symbol, or emblem that creates
the impression that the advertisement is made on behalf of a
governmental entity.
(d) This section does not prohibit a residential mortgage
loan originator from accurately advertising that the residential
mortgage loan originator is affiliated with the Federal Deposit
Insurance Corporation or the National Credit Union Association or
is an equal housing opportunity lender under the Fair Housing Act
(42 U.S.C. Section 3601 et seq.), including by inclusion or use of
an image, symbol, or emblem meant to advertise that affiliation or
status.
(e) A violation of this section is a deceptive trade
practice under Subchapter E, Chapter 17, Business & Commerce Code,
and is actionable under that subchapter, except that Section
17.565, Business & Commerce Code, does not apply.
(f) The commissioner shall adopt rules to implement this
section.
SECTION 2. This Act takes effect September 1, 2023.