By Olivo H.B. No. 3238 77R8558 DWS-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to false, misleading, or deceptive statements or 1-3 representations in connection with a home loan. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle B, Title 4, Finance Code, is amended by 1-6 adding Chapter 343 to read as follows: 1-7 CHAPTER 343. HOME LOANS 1-8 Sec. 343.001. FALSE, MISLEADING, OR DECEPTIVE STATEMENT OR 1-9 REPRESENTATION. (a) In this section: 1-10 (1) "Home loan" means a loan to one or more 1-11 individuals, other than a reverse mortgage, in which: 1-12 (A) the principal amount does not exceed the 1-13 conforming loan size limit for a single-family dwelling established 1-14 by the Federal National Mortgage Association; 1-15 (B) the debt is incurred primarily for personal, 1-16 family, or household purposes; and 1-17 (C) the loan is secured by a mortgage or deed of 1-18 trust on real property on which is located or is to be located one 1-19 or more structures designed principally for occupancy by four or 1-20 fewer families that are or will be occupied by the borrower as the 1-21 borrower's principal residence. 1-22 (2) "Lender" means an entity that originated, or acted 1-23 as an intermediary between originators and borrowers, on more than 1-24 five home loans within the preceding 12-month period. 2-1 (b) A lender, appraiser, or real estate agent may not make 2-2 or cause to be made, directly or indirectly, a false, deceptive, or 2-3 misleading statement or representation in connection with a home 2-4 loan. A statement or representation is deceptive or misleading if 2-5 it has the capacity or tendency to deceive or mislead a borrower or 2-6 potential borrower, considering: 2-7 (1) the overall impression that the statement or 2-8 representation reasonably creates; and 2-9 (2) the particular type of audience to which the 2-10 statement or representation is directed and whether the statement 2-11 or representation may be reasonably comprehended by that audience. 2-12 SECTION 2. This Act takes effect September 1, 2001, and 2-13 applies only to a loan closed on or after that date.