Opinion No. Oag 29-76, (1976)

R. J. MCMAHON, Commissioner Office of the Commissioner ofSavings and Loan

You request my opinion as to whether a loan fee charged to a borrower by a lender would constitute interest for purposes of sec. 138.05, Stats., and, if considered as interest. as to how that fee is to be amortized for purposes of calculating the interest rate. You advise that such fees are generally charged to the borrower in one lump sum, are based upon the amount borrowed, and may or may not be intended to cover the costs of appraisals, title examinations, and other third-party services.

You have directed my attention…