Michigan § 438.31a Payment of reasonable and necessary charges in addition to interest; exceptions.

Michigan Statutes

§ 438.31a — Payment of reasonable and necessary charges in addition to interest; exceptions.

Michigan § 438.31a

Ch. 438MONEY AND INTEREST

Act 326 of 1966INTEREST RATES (438.31-438.33)

This text of Michigan § 438.31a (Payment of reasonable and necessary charges in addition to interest; exceptions.) is published on Counsel Stack Legal Research, covering Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mich. Comp. Laws § 438.31a (2026).

Text

INTEREST RATES (EXCERPT) Act 326 of 1966 438.31a Payment of reasonable and necessary charges in addition to interest; exceptions. Sec. 1a. A state or national bank, except as federal law and regulation provide otherwise, insurance company, or lender approved as a mortgagee under the national housing act, 12 U.S.C. 1701 to 1750g, or regulated by a federal agency, may require a borrower to pay reasonable and necessary charges which are the actual expenses incurred by the lender in connection with the making, closing, disbursing, extending, readjusting, or renewing of a loan. The charges shall be in addition to interest authorized by law, and are not a part of the interest collected or agreed to be paid on the loan within the meaning of a law of this state which limits the rate of interest wh

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INTEREST RATES (EXCERPT) Act 326 of 1966 438.31a Payment of reasonable and necessary charges in addition to interest; exceptions. Sec. 1a. A state or national bank, except as federal law and regulation provide otherwise, insurance company, or lender approved as a mortgagee under the national housing act, 12 U.S.C. 1701 to 1750g, or regulated by a federal agency, may require a borrower to pay reasonable and necessary charges which are the actual expenses incurred by the lender in connection with the making, closing, disbursing, extending, readjusting, or renewing of a loan. The charges shall be in addition to interest authorized by law, and are not a part of the interest collected or agreed to be paid on the loan within the meaning of a law of this state which limits the rate of interest which may be exacted in a transaction. Reasonable and necessary charges shall consist of recording fees; title examination or title insurance; the preparation of a deed, appraisal, or credit report; plus a loan processing fee. The charges shall be paid only once by the borrower to either the seller of the mortgage or the lender. A charge for inspection required by a local unit of government shall be paid by the seller and shall not be charged to the borrower. This section does not apply to a corporation organized under Act No. 156 of the Public Acts of 1964, as amended, being sections 489.501 to 489.920 of the Michigan Compiled Laws, or a federally chartered savings and loan association.

Legislative History

Add. 1968, Act 266, Imd. Eff. July 1, 1968 ;-- Am. 1969, Act 255, Imd. Eff. Aug. 11, 1969 ;-- Am. 1978, Act 27, Imd. Eff. Feb. 24, 1978 Popular Name: Usury Act