HBA-JLV H.B. 3238 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3238
By: Olivo
Financial Institutions
3/28/2001
Introduced



BACKGROUND AND PURPOSE 

Current lending regulations do not provide safeguards against lenders
making false, deceptive, or misleading statements in connection with making
a loan.  There are concerns that predatory lending  practices target
members of society who have few resources.  These people may lack the money
to seek legal counsel if they have been the target of predatory lending
practices and lack the knowledge to contact an appropriate enforcement
agency.  House Bill 3238 prohibits a lender from making, directly or
indirectly, any false, deceptive, or misleading statements in connection
with making a loan. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3238 amends the Finance Code to prohibit a lender, appraiser, or
real estate agent from making or causing to be made, directly or
indirectly, a false, deceptive, or misleading statement or representation
in connection with a home loan and sets forth what constitutes a deceptive
or misleading statement or representation. 

EFFECTIVE DATE

September 1, 2001.