2023 Texas Statutes › Finance Code › Title 3 - Financial Institutions and Businesses › Subtitle E - Other Financial Businesses › Chapter 156 - Residential Mortgage Loan Companies › Subchapter F. Recovery Fund › Section 156.501. Recovery Fund

Sec. 156.501.  RECOVERY FUND.  (a)  The commissioner shall establish, administer, and maintain a recovery fund as provided by Section 13.016 and this subchapter.  The amounts received by the commissioner for deposit in the fund shall be held by the commissioner in trust for carrying out the purposes of the fund.
(b)  Subject to this subsection and Section 156.502(b), the recovery fund shall be used to reimburse residential mortgage loan applicants for actual damages incurred because of acts committed by a residential mortgage loan originator who was licensed under Chapter 157 when the act was committed.  The use of the fund is limited to reimbursement for out-of-pocket losses caused by an act by a residential mortgage loan originator licensed under Chapter 157 that constitutes a violation of Section 157.024(a)(2), (3), (5), (7), (8), (9), (10), (13), (16), (17), or (18) or 156.304(b).
(b-1)  Payments from the recovery fund may not be made to a lender who makes a residential mortgage loan originated by the residential mortgage loan originator or who acquires a residential mortgage loan originated by the residential mortgage loan originator.
Text of subsection as amended by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 5
(c)  Amounts in the recovery fund may be invested and reinvested in accordance with Chapter 2256, Government Code, and under the prudent person standard described in Section 11b, Article VII, Texas Constitution, and the interest from these investments shall be deposited to the credit of the fund. An investment may not be made under this subsection if the investment will impair the necessary liquidity required to satisfy claims awarded under this subchapter.
Text of subsection as amended by Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900), Sec. 6
(c)  Amounts in the recovery fund may be invested and reinvested in accordance with Chapter 2256, Government Code, and under the prudent person standard described by Section 11b, Article VII, Texas Constitution, and the interest from these investments shall be deposited to the credit of the fund.  An investment may not be made under this subsection if the investment will impair the necessary liquidity required to satisfy judgment payments awarded under this subchapter.
(d)  Repealed by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 9, and Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900), Sec. 7(2), eff. September 1, 2021.
(e)  Payments from the recovery fund shall be reduced by the amount of any recovery from the residential mortgage loan originator or from any surety, insurer, or other person or entity making restitution to the applicant on behalf of the residential mortgage loan originator.
(f)  Repealed by Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 9, and Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900), Sec. 7(2), eff. September 1, 2021.
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999.
Amended by:
Acts 2005, 79th Leg., Ch. 1018 (H.B. 955), Sec. 6.18, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 19, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 38, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 40, eff. September 1, 2013.
Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 5, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 929 (H.B. 3617), Sec. 9, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900), Sec. 6, eff. September 1, 2021.
Acts 2021, 87th Leg., R.S., Ch. 963 (S.B. 1900), Sec. 7(2), eff. September 1, 2021.