| (a) Application of Finance Code Chapter 156, Subchapter
F. Finance Code §156.555(b), adopts by reference the eligibility
and procedural requirements for making a claim on the Commissioner's
recovery fund in accordance with Finance Code Chapter 156, Subchapter
F. This section clarifies how certain of such requirements apply to
a claim made on the Mortgage Grant Fund in accordance with Finance
Code §156.555.
(b) Actions by an Unlicensed Individual Acting as an
Originator. To be eligible to recover from the Mortgage Grant Fund,
the individual alleged to have caused harm to the claimant must have
been acting or attempting to act in the capacity of an originator
- actions for which a license under Finance Code Chapter 157 was required
as provided by Finance Code §157.012 and §81.100 of this
title (relating to Licensing - General).
(c) Fraudulent Acts. Recovery under Finance Code §156.555
is limited to acts of fraud committed by an individual who acted as
a residential mortgage loan originator but who did not hold the license
required by Finance Code Chapter 157. Finance Code §156.501(b),
applicable to claims made on the recovery fund, provides that recovery
is limited to acts by a licensed originator that constitute a violation
of specific, enumerated provisions of Finance Code §§157.024(a)
and 156.304(b). As a result, in order to recover under Finance Code §156.555,
a claimant must establish that the acts of the unlicensed individual,
had he or she been licensed as a residential mortgage loan originator
at the time of such acts, would have constituted fraudulent dealings
for purposes of Finance Code §157.024(a)(3).
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