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.