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.