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.