1. (a) Recoverable Damages. A claimant may only recover out-of-pocket monetary damages that reimburse the claimant for money they have actually lost (money losses). To be recoverable, the damages must be direct damages (also known as general damages) that are caused by and directly related to the respondent's actions and therefore conclusively presumed to have been foreseeable by the respondent as a usual and necessary consequence of the respondent's actions.

   1. (1) Recoverable damages can include the following expenses typically incurred by a mortgage applicant in connection with a residential mortgage loan, if they are paid by the claimant:

      1. (A) application fees;
      2. (B) appraisal fees;
      3. (C) rate lock fees;
      4. (D) origination fees;
      5. (E) loan processing fees; and
      6. (F) other fees for settlement services collected from the borrower when a residential mortgage loan is closed.

   2. (2) Recoverable damages can include the following expenses typically incurred by a mortgage applicant in a real estate transaction directly related to a residential mortgage loan, if they are paid by the claimant:

      1. (A) option fees;
      2. (B) earnest money;
      3. (C) home inspection fees; and
      4. (D) home warranty fees.

2. (b) Damages Not Recoverable. A claimant may not recover consequential damages (also known as special damages), future damages, or noneconomic damages.

   1. (1) Noneconomic damages that are not recoverable include, but are not limited to:

      1. (A) compensation for physical pain and suffering;
      2. (B) mental or emotional pain and anguish;
      3. (C) loss of consortium;
      4. (D) disfigurement;
      5. (E) physical impairment;
      6. (F) loss of companionship and society;
      7. (G) inconvenience;
      8. (H) loss of enjoyment of life; and
      9. (I) injury to reputation.

   2. (2) The following damages are expenses that may be incurred by a mortgage applicant in connection with a real estate sales transaction related to a residential mortgage loan, but are deemed to be consequential damages that are not recoverable (list is not exhaustive):

      1. (A) travel expenses paid in connection with the mortgage applicant shopping for real estate (e.g., fuel expenses, vehicle rental, airfare, and hotel fees);
      2. (B) expenses related to terminating the mortgage applicant's preexisting housing arrangements (e.g., lease termination fees, cleaning fees, reletting fees, and lost security deposit);
      3. (C) expenses paid in connection with the mortgage applicant relocating to their prospective housing arrangements (e.g., shipping fees, moving expenses, and storage fees);
      4. (D) expenses paid in connection with securing replacement housing (e.g., rent, hotel fees, utility costs, and home furnishings); and
      5. (E) daily living expenses (e.g., food, clothing, and personal care items).

Source Note:The provisions of this §53.12 adopted to be effective July 10, 2025, 50 TexReg 3870.