Skip to content
BOL Conferences
Learn More - Click Here!

Thread Options
#1995409 - 02/11/15 08:01 PM Interim Construction/Late Fees
Glutes Offline
Platinum Poster
Glutes
Joined: Dec 2005
Posts: 591
Texas
I couldn't find the answer to my question via the Search feature, but I see it was asked multiple times and never answered in this old thread:

Can late fees be charged on interest only portion of loan?

We have never charged late fees on our interim construction loans, but the question has been raised here on whether this is actually prohibited by Texas law. If so, can the citation in the Texas Finance Code be linked?

Thanks in advance for any responses.

Return to Top
#1996006 - 02/13/15 05:50 PM Re: Interim Construction/Late Fees Glutes
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1996086 - 02/13/15 08:13 PM Re: Interim Construction/Late Fees Glutes
Glutes Offline
Platinum Poster
Glutes
Joined: Dec 2005
Posts: 591
Texas
Thanks for the link Randy...I had actually seen that, BUT that addresses commercial loans. The interim construction loans referenced in my question are consumer rather than commercial. For some reason, I recall there being an issue with the late charge assessed on the balloon payment for these loans creating a usury issue, but I can't find any info on this.

Return to Top
#1996191 - 02/13/15 11:19 PM Re: Interim Construction/Late Fees Glutes
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Have you read this interpretive letter on consumer late fee. I know it is old, but I am not aware of any changes that would impact it:

http://www.ibat.org/pdfs/1999/10/20/late-charges-fees-interpretive-letter

I believe that you could charge a late fee on the individual installments due, just not on the final balloon payment.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top

Moderator:  Andy_Z