Opinion No. Oag 9-80, (1980)

R. J. MCMAHON, Commissioner Office of the Commissioner of Savingsand Loan

You have requested my opinion on whether commitment fees constitute interest for purposes of sec. 138.05, Stats. You have described a situation in which a savings and loan association has adopted a policy of charging a commitment fee to a loan applicant to which the association is willing to make a loan and in which the amount of the commitment fee charged relates directly to the amount that the association is willing to lend. The commitment fee is usually between one percent and three percent of that amount. Upon…