HBA-JLV H.B. 3240 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3240
By: Olivo
Financial Institutions
3/28/2001
Introduced



BACKGROUND AND PURPOSE 

Current lending regulations do not provide safeguards against lenders who
charge a fee for a service or product that is not actually provided to the
borrower, in connection with a home 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 and lack
the knowledge to contact an appropriate enforcement agency.  House Bill
3240 prohibits a lender, in connection with a home loan, from charging a
fee for a service or product that is not actually provided. 

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 3240 amends the Finance Code to prohibit a lender, in connection
with a home loan, from charging a fee for a product or service not provided
to the borrower or misrepresenting the amount charged by or paid to another
person for a product or service. 

EFFECTIVE DATE

September 1, 2001.