(1) There is hereby created in the state treasury the mortgage recovery fund.
(2) As provided in section 26-31-112, Idaho Code, the mortgage recovery fund shall be used to reimburse persons to whom an Idaho court awards actual damages resulting from acts constituting violations of this chapter by a mortgage broker, mortgage lender or mortgage loan originator who was licensed, or required to be licensed, under this chapter at the time that the act was committed.
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Terms Used In Idaho Code 26-31-109

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
  • Person: means a natural person, corporation, company, limited liability company, partnership or association. See Idaho Code 26-31-102
  • State: when applied to the different parts of the United States, includes the District of Columbia and the territories; and the words "United States" may include the District of Columbia and territories. See Idaho Code 73-114
(3) A recovery from the mortgage recovery fund shall not include punitive damages awarded by a court.
(4) Payments from the mortgage recovery fund may not be made to:
(a) Any lender whose acts, or the acts of its agent, were found by a court to be violations of this chapter and a basis of the court’s award of a money judgment to a person injured by such violations;
(b) Any person who acquires a mortgage loan where acts associated with the origination of such loan are found by a court to be violations of this chapter and a basis for a judgment obtained by a person injured by such violations; or
(c) The spouse, the personal representative of the spouse of the judgment debtor or the personal representative of the judgment debtor.