What is the maximum loan origination fee that can be charged on a consumer purpose loan that is 1) secured by real estate and 2) NOT secured by real estate?

I don't think there is a limit on #1. As for #2, per Florida Statute 658.49 on consumer loans of $50,000 or less the limit is "the lesser of $50 or 2 percent of the principal amount of the loan."

We used to charge a $195 loan fee for an auto loan. We reduced it to $100 recently.

We used to charge $500 for a MFH w/o land and reduced it to $200.

State examiners have never said anything about our fees being too high.

I know I am stating the obvious here, but it sounds like we've been charging too much all along.

What's the penalty if we don't change it to the lesser of 2% of loan amt or $50?

Huh. For some reason, the link stopped working. Let me try that again:
Florida Statute 658.49

Anyway, in there it says:

"(3)Any charges in excess of the combined total of all charges authorized and permitted by subsection (1) shall constitute a violation of chapter 687 governing interest and usury, and the penalties of chapter 687 shall apply."

Here's the index page to 687

Plus, you'd have a consumer loan compliance violation, which never goes over well with the auditors. I can't remember, though, if it is also a tolerance violation of the APR or not.

From what I read in the statute, examiners can essentially force us to reimburse to the borrower any amount that was in excess of the fee permitted by law. For example, if we charged $100 for a $25,000 auto loan, they can force us to remit back to the borrower $50.

I know this is simplistic, but I want to be sure I understand.

And, if this applies to commercial loans, I am very sure we have charged over $50 for a $50,000 commercial LOC, for example.

We limit it, although we aren't examined by FL Depart of Banking...usury isn't something I want to play around with much!

We have alive example of a $29,000 loan to an individual, but it's for a business purpose. Lender wants to charge $250. Is this a violation?

According to FL usury law...yes.

I was just told that in the past, the bank interpreted the law to mean that it was a violation only if we did BOTH (i.e., charged over 18% and charged a fee more than $50).

I don't interpret it this way - I see it as a violation if you do one thing or the other.

Unless I am missing something??

I have asked the regulator's down there and they say that is a common misinterpretation. Waldensouth sent me an interpretive letter on it a few years back...

I think there are a LOT of bank's that don't abide by that law..but I don't see any exceptions to it, myself.

Years ago we would charge the $50 fee and exclude it from the finance charge, we had to keep records of how much other banks in the area were charging to defend that it was reasonable. Excluding the charge kept our APRs lower. Then we were bought by a larger bank and they charged more but included it as a prepaid finance charge. Where I am now we charge $50 for loans other than RE where we charge $300 - but we include it as a PFC so we don't have to defend the amount of the charge. On a small loan, we have to play with the amount and interest rate to insure we do not go over 18% - sometimes we can only charge $25.

If you include the amount you charge as a prepaid finance charge and do not exceed 18% you are ok, there is nothing to refund. The 2% of loan amount or $50 is so you can exclude it from the finance charge.