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Expert Analysis

Honchariw Case May Greatly Affect Default Loans In Calif.

By Marcus Colabianchi, Elinor Murarova and Allison Midei (March 21, 2023, 4:48 PM EDT) -- In the recent case of Honchariw v. FJM Private Mortgage Fund LLC, the Court of Appeal of the State of California, First Appellate District, held that default interest is unlawful when a lender assesses it against the full outstanding principal balance on a partially matured loan, and where there is no evidence that the amount was a reasonable estimate of the lender's anticipated damages when the parties executed their loan agreement....

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