Permissible lender's expenses,which would not be considered in determining the rate of interest under usury statutes,include all but which of the following?
A)Cost of title examination.
B)Reasonable cost of drawing up the necessary documents.
C)A charge to the borrower of $500 to investigate the borrower's credit, when it actually cost the lender $75.
D)All of the above charges would be considered in determining the rate of interest under usury statutes.

Question

Quizplus · Accepted Answer

Permissible lender's expenses include the cost of title examination and reasonable cost of drawing up necessary documents. However, charging the borrower an amount that exceeds the actual cost of investigating their credit would be considered as part of the interest rate calculation under usury statutes. Therefore, option C is not a permissible lender's expense.

Permissible Lender's Expenses,which Would Not Be Considered in Determining the Rate