A continuous and steady expansion of residential dwelling is desirable from both a sociological and economic standpoint. Continuing support is required from risk capital willing to invest throughout the United States. This necessarily means that, if funds are to be drawn from areas of financial plenty to areas experiencing a financial drought, the investor will often not be a party to the original loan transaction, but will be a transferee of a local mortgage lender. We will consider those situations which are most often the foundation for an allegation of usury by the borrower-where there is a substantiated charge of usury against the originating mortgagee as well as his transferee. Certain principles will also be discussed which restrict the risk of usury to the lender and his transferee.
Gordon M. Harrell, Mortgage Investments and the Usury Problem, 10 Clev.-Marshall L. Rev. 343 (1961)