Tex. Fin. Code Section 156.506
Revocation or Suspension of License for Payment from Recovery Fund


(a)

The commissioner may revoke or suspend a license issued under Chapter 157 (Mortgage Bankers and Residential Mortgage Loan Originators) on proof that the commissioner has made a payment from the recovery fund of any amount toward satisfaction of a claim against a residential mortgage loan originator under Chapter 157 (Mortgage Bankers and Residential Mortgage Loan Originators).

(a-1)

The commissioner may seek to collect from a residential mortgage loan originator the amount paid from the recovery fund on behalf of the residential mortgage loan originator and any costs associated with investigating and processing the claim against the fund or with collection of reimbursement for payments from the recovery fund, plus interest at the current legal rate until the amount has been repaid in full. Any amount, including interest, recovered by the commissioner shall be deposited to the credit of the fund.

(b)

The commissioner may probate an order revoking or suspending a license under this section.

(c)

A person on whose behalf payment was made from the recovery fund is not eligible to receive a new license or have a suspension lifted under this chapter or Chapter 157 (Mortgage Bankers and Residential Mortgage Loan Originators) until the person has repaid in full, plus interest at the current legal rate, the amount paid from the fund on the person’s behalf and any costs associated with investigating and processing the claim against the fund or with collection of reimbursement for payments from the fund.

(d)

This section does not limit the authority of the commissioner to take disciplinary action against a residential mortgage loan originator for a violation of Chapter 157 (Mortgage Bankers and Residential Mortgage Loan Originators) or the rules adopted by the finance commission under that chapter. The repayment in full to the recovery fund of all obligations of a residential mortgage loan originator does not nullify or modify the effect of any other disciplinary proceeding brought under Chapter 157 (Mortgage Bankers and Residential Mortgage Loan Originators).
Added by Acts 1999, 76th Leg., ch. 1254, Sec. 2, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 867, Sec. 93, eff. Sept. 1, 2001.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 1317 (H.B. 2774), Sec. 25, eff. September 1, 2009.
Acts 2011, 82nd Leg., R.S., Ch. 655 (S.B. 1124), Sec. 43, eff. September 1, 2011.
Acts 2013, 83rd Leg., R.S., Ch. 160 (S.B. 1004), Sec. 45, eff. September 1, 2013.

Source: Section 156.506 — Revocation or Suspension of License for Payment from Recovery Fund, https://statutes.­capitol.­texas.­gov/Docs/FI/htm/FI.­156.­htm#156.­506 (accessed Mar. 23, 2024).

156.001
Short Title
156.002
Definitions
156.003
Secondary Market Transactions
156.004
Disclosure to Applicant
156.005
Affiliated Business Arrangements
156.101
Administration and Enforcement of Chapter
156.102
Rulemaking Authority
156.103
Powers of Commissioner
156.104
Mortgage Industry Advisory Committee
156.105
Standard Forms
156.201
Licenses Required
156.202
Exemptions
156.203
Application
156.206
Criminal and Other Background Checks
156.207
Issuance of License
156.208
Renewals
156.209
Denial of Applications and Renewals
156.210
Conditional License
156.211
Change of Address or Sponsorship
156.212
Maintenance and Location of Offices
156.213
Mortgage Call Report
156.301
Inspections
156.302
Administrative Penalty
156.303
Disciplinary Action
156.304
Fee Assessment and Disclosure
156.305
Restitution
156.401
Hearings and Judicial Review
156.402
Civil Actions and Injunctive Relief
156.403
Burden of Proof to Establish an Exemption
156.404
Reliance on Written Notices from Commissioner
156.406
Unlicensed Activity
156.501
Recovery Fund
156.502
Funding
156.503
Statute of Limitations
156.504
Procedure for Recovery
156.505
Recovery Limits
156.506
Revocation or Suspension of License for Payment from Recovery Fund
156.507
Subrogation
156.508
Failure to Comply with Subchapter or Rule Adopted by the Finance Commission
156.551
Mortgage Grant Fund
156.552
Funding
156.553
Management of Fund
156.554
Disbursement from Fund
156.555
Payment of Claims for Fraudulent Unlicensed Activity
156.556
Rules
156.2012
Registered Financial Services Company
156.2041
Qualifications and Requirements for License: Mortgage Company
156.2042
Qualifications and Requirements for License: Credit Union Subsidiary Organization
156.2043
Qualifications and Requirements for License: Auxiliary Mortgage Loan Activity Company
156.2044
Qualifications and Requirements for License: Independent Contractor Loan Processor or Underwriter Company
156.2046
Conviction of Offense
156.2081
Reinstatement After Expiration
156.3011
Issuance and Enforcement of Subpoena

Accessed:
Mar. 23, 2024

§ 156.506’s source at texas​.gov