The Texas recovery fund holds $4.1 million at the end of a calendar year. What happens to the year-end balance above the statutory fund threshold?
Correct Answer
C) The excess over $3.5 million is remitted to the mortgage grant fund
If the balance remaining in the recovery fund at the end of a calendar year exceeds $3.5 million, the excess is remitted to the comptroller for deposit in the mortgage grant fund. Other choices: $2 million is not the threshold; there is a ceiling, so an unlimited balance is wrong; and the surplus moves to another fund rather than back to licensees. Source: Tex. Fin. Code sec. 156.502(b)
Why This Is the Correct Answer
If the balance remaining in the recovery fund at the end of a calendar year exceeds $3.5 million, the excess is remitted to the comptroller for deposit in the mortgage grant fund. Other choices: $2 million is not the threshold; there is a ceiling, so an unlimited balance is wrong; and the surplus moves to another fund rather than back to licensees. Source: Tex. Fin. Code sec. 156.502(b)
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