Regulation and compliance is a growing challenge for companies across the mortgage industry. In the reverse mortgage industry, lenders are under the microscope due to false, misleading or misleading advertisements. Texas House Bill 1129 aims to protect reverse mortgage borrowers from the aforementioned dangers.
“It is primarily aimed at defining the parameters of what qualifies as deceptive advertising, as well as indicating that a piece of material found to violate the proposed law would constitute a violation of the Texas Code of Business and Commerce as a misleading trade. practice “, according to report from Reverse Mortgage Daily.
According to the report, the State and Local Committee of the National Association of Reverse Mortgage Lenders is intervening by reviewing, among other things, this particular state statute to see what impact this legislation might have on reverse mortgage lending.
“The problem with this legislation, frankly, was that it was too open, and indeed [did not] there is a start time or a stop time, ”said Scott Norman, NRMLA co-chair and vice president of retail and director of government affairs for Finance of America Reverse, at the NRMLA virtual policy conference, according to RMD. “And theoretically, [a borrower] could – in 10 years – come back and say: “So-and-so told me something that, in my opinion, is somewhat confusing, and I feel that I have been harmed.” So what are we working on [is putting] together an amendment to bill 1129 by the House of Representatives to narrow the scope of what they are trying to do. “
“[Such practices are] the way we get into legislation like this is certainly well-intentioned, but we have to work beyond what is allowed by federal guidelines – and of course the NRMLA has a lot of guidelines that they enjoy working with – so we’re really trying to narrow things down, ”added Norman, according to the report. “We have no problem with the idea of a consumer protection bill, we have a problem with the idea that it is so unlimited that anyone can say anything and anyone can cry like a wolf at any moment, even 5-10 years later.”
Learn more about Texas House Bill 1129 and how the NRMLA tries to clarify the parameters of misleading advertising.