Gibson v. Drew Mortgage Co.

PAUL PRESSLER, Justice.

This is an appeal from a judgment denying appellants’ usury claim and awarding them $1,475 plus interest and attorney’s fees for breach of contract. We affirm.

Appellee committed to make a residential home mortgage loan of $73,750 to appellants payable in thirty years at the interest rate prevailing at the time of closing. Appellants paid $1,475 which was to be returned at closing, applied to closing costs or retained for services rendered if closing did not occur. This amount was referred to as a “standby fee” in the commitment letter.

It is undisputed that the standby…