Texas Finance Code 156.555 – Payment of Claims for Fraudulent Unlicensed Activity
Current as of: 2024 | Check for updates
|
Other versions
(a) A residential mortgage loan applicant may make a claim on and receive payment from the mortgage grant fund for the recovery of the applicant’s actual, out-of-pocket damages incurred because of fraud committed by an individual who acted as a residential mortgage loan originator but who did not hold the required license issued under Chapter 157 at the time the individual committed the fraudulent act.
(b) The eligibility and procedural requirements for a claim made under § 156.504 and the statute of limitations under § 156.503 apply to a residential mortgage loan applicant who makes a claim under this section.
Terms Used In Texas Finance Code 156.555
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Fraud: Intentional deception resulting in injury to another.
- 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
- Statute of limitations: A law that sets the time within which parties must take action to enforce their rights.
(c) Payments made from the mortgage grant fund to a residential mortgage loan applicant under this section are subject to the limits provided by § 156.505.