Three borrowers on one 2026 Texas transaction each claim $14,000 from the recovery fund for the same misconduct. What aggregate cap applies to eligible claims arising from the same transaction?
Correct Answer
B) Claims from one transaction are capped at $25,000 in the aggregate
A payment for claims arising out of the same transaction, including interest, is limited in the aggregate to $25,000 regardless of the number of claimants, and concurrent claims exceeding what is available are prorated by the damage each claimant suffered. Other choices: paying each of the 3 in full would reach $42,000 and defeat the cap; $50,000 is the separate limit measured against a single originator across transactions; and filing order does not decide it. Source: Tex. Fin. Code sec. 156.505(b)(1)
Why This Is the Correct Answer
A payment for claims arising out of the same transaction, including interest, is limited in the aggregate to $25,000 regardless of the number of claimants, and concurrent claims exceeding what is available are prorated by the damage each claimant suffered. Other choices: paying each of the 3 in full would reach $42,000 and defeat the cap; $50,000 is the separate limit measured against a single originator across transactions; and filing order does not decide it. Source: Tex. Fin. Code sec. 156.505(b)(1)
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