Texas § 341.605 PROCEDURE FOR RECOVERY.

Texas Statutes

§ 341.605 — PROCEDURE FOR RECOVERY.

Texas § 341.605

Code FIFinance Code

This text of Texas § 341.605 (PROCEDURE FOR RECOVERY.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Finance Code Code Ann. § 341.605 (2026).

Text

Sec. 341.605. PROCEDURE FOR RECOVERY.

(a)To recover from the fund, a residential mortgage loan applicant must file a written sworn application with the commissioner in the form prescribed by the commissioner. A person who knowingly makes a false statement in connection with applying for money out of the fund may be subject to criminal prosecution under Section 37.10 , Penal Code.

(b)The residential mortgage loan applicant is required to show:

(1)that the applicant's claim is based on facts allowing recovery under Section 341.602 ; and

(2)that the applicant:

(A)is not a spouse of the state-licensed residential mortgage loan originator;

(B)is not a child, parent, grandchild, grandparent, or sibling, including relationships by adoption, of the state-licensed residential mortgage loan or

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Sec. 341.605. PROCEDURE FOR RECOVERY. (a) To recover from the fund, a residential mortgage loan applicant must file a written sworn application with the commissioner in the form prescribed by the commissioner. A person who knowingly makes a false statement in connection with applying for money out of the fund may be subject to criminal prosecution under Section 37.10 , Penal Code.
(b) The residential mortgage loan applicant is required to show:
(1) that the applicant's claim is based on facts allowing recovery under Section 341.602 ; and
(2) that the applicant:
(A) is not a spouse of the state-licensed residential mortgage loan originator;
(B) is not a child, parent, grandchild, grandparent, or sibling, including relationships by adoption, of the state-licensed residential mortgage loan originator;
(C) is not a person sharing living quarters with the state-licensed residential mortgage loan originator or a current or former employer, employee, or associate of the originator;
(D) is not a person who has aided, abetted, or participated other than as a victim with the state-licensed residential mortgage loan originator in any activity that is illegal under this subtitle or Chapter 180 or is not the personal representative of a state-licensed residential mortgage loan originator; and
(E) is not licensed as a state-licensed residential mortgage loan originator who is seeking to recover any compensation in the transaction or transactions for which the application for payment is made.
(c) On receipt of the verified application, the commissioner's staff shall:
(1) notify each appropriate license holder and the issuer of any surety bond issued in connection with their licenses; and
(2) investigate the application and issue a preliminary determination, giving the applicant, the license holder, and any surety an opportunity to resolve the matter by agreement or to dispute the preliminary determination.
(d) If the preliminary determination under Subsection (c)(2) is not otherwise resolved by agreement and is not disputed by written notice to the commissioner before the 31st day after the notification date, the preliminary determination automatically becomes final and the commissioner shall make payment from the fund, subject to the limits of Section 341.606 .
(e) If the preliminary determination under Subsection (c)(2) is disputed by the applicant, license holder, or any surety by written notice to the commissioner before the 31st day after the notification date, the matter shall be set for a hearing governed by Chapter 2001 , Government Code, and the hearing rules of the finance commission.