Sec. 158.055. BOND. (a) Before approval of the registration, an applicant for registration under this chapter shall file with the commissioner, and shall keep in force while the registration remains in effect, a surety bond meeting the requirements of this section or, if a surety bond is not available to the applicant from a surety company authorized to do business in this state, other collateral of like kind as determined by the commissioner.
(b) The bond must be:
(1) in an amount not to exceed $200,000, except as provided by Subsection (c); and
(2) payable to the commissioner.
(c) This subsection applies only to an applicant who services only residential mortgage loans secured by unimproved residential real estate or services only residential mortgage loans secured by foreclosed property with a dwelling, or both. If sales of the property described by this subsection do not exceed $1 million annually, the bond for an applicant described by this section must be in an amount not to exceed $25,000.
(d) If a registrant fails to comply with a final order of the commissioner, the commissioner may make a claim on the bond to recover and pay a consumer the amount to which the consumer was entitled under the commissioner's order.
(e) When an action is commenced on a registrant's bond, the commissioner may require the filing of a new acceptable bond. Immediately on recovery on any action on the bond, the registrant shall file a new bond.
(f) The bond procedures established by this section are created to specifically exclude the participation of registrants in the recovery fund established under Chapter 156.
(g) The finance commission may adopt rules establishing the terms and conditions of the surety bond and the qualifications of the surety.
(h) A registrant is not required to file a bond under this chapter if the registrant:
(1) collects delinquent consumer debts owed on residential mortgage loans;
(2) does not own the residential mortgage loans for which the registrant acts as a residential mortgage loan servicer; and
(3) is a third-party debt collector that has filed a bond in compliance with Chapter 392.
Added by Acts 2011, 82nd Leg., R.S., Ch. 588 (S.B. 17), Sec. 1, eff. September 1, 2011.
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