{"id":4191,"date":"2022-12-08T00:00:00","date_gmt":"2022-12-08T00:00:00","guid":{"rendered":"https:\/\/www.californiamortgageassociation.org\/2022\/12\/08\/important-legal-update-from-cma\/"},"modified":"2022-12-08T00:00:00","modified_gmt":"2022-12-08T00:00:00","slug":"important-legal-update-from-cma","status":"publish","type":"post","link":"https:\/\/www.californiamortgageassociation.org\/2022\/12\/08\/important-legal-update-from-cma\/","title":{"rendered":"Important Legal Update from CMA"},"content":{"rendered":"\n<p>The California Court of Appeals recently published an opinion holding prohibiting charging default interest on the entire unpaid principal balance following a monthly payment default.&nbsp;As you all know, default interest is valuable tool to offset the additional cost\/loss resulting from the default and to encourage the borrower to remain current.&nbsp;As a result, the&nbsp;<em>Honchariw&nbsp;<\/em>decision was a huge blow to non-consumer lenders.&nbsp;<\/p>\n\n\n\n<p>Fortunately, there is a glimmer of hope on the horizon.\u00a0The lender in\u00a0<em>Honchariw,\u00a0<\/em>FJM Private Mortgage Fund, filed a Petition for Review by the California Supreme Court.\u00a0To bolster FJM\u2019s efforts, the CMA\u2019s General Counsel, Robert Finlay, and his team at Wright, Finlay &amp; Zak, LLP filed this <a href=\"https:\/\/files.constantcontact.com\/c6a5f1c7001\/30b17dba-edbe-4f0e-867d-46168e1ff8a5.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Amicus Letter<\/a> in support of the Petition for Review.\u00a0Robert\u2019s firm was also able to get the Mortgage Bankers Association, California Mortgage Bankers Association, National Private Lenders Association and American Association of Private Lenders to join the Amicus efforts. We hope to have a decision in the next 30-60 days.\u00a0If granted, the CA Supreme Court will set a briefing schedule, where we will have an opportunity to brief the substantive issues.\u00a0<\/p>\n\n\n\n<p><strong><a href=\"https:\/\/files.constantcontact.com\/c6a5f1c7001\/30b17dba-edbe-4f0e-867d-46168e1ff8a5.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">CLICK HERE<\/a><\/strong> for a copy of the Amicus Letter.\u00a0If you have any questions on the decision, its impact on a particular loan or whether you should revise your loan documents to bolster your ability to charge default interest, please feel free to reach out to Robert Finlay at\u00a0<a href=\"mailto:rfinlay@wrightlegal.net\" target=\"_blank\" rel=\"noreferrer noopener\">rfinlay@wrightlegal.net<\/a>\u00a0or Michelle Rodriguez at\u00a0<a href=\"mailto:mrodriguez@wrightlegal.net\" target=\"_blank\" rel=\"noreferrer noopener\">mrodriguez@wrightlegal.net<\/a>.<\/p>\n\n\n\n<p>Thank you!<\/p>\n\n\n\n<p>T. Robert Finlay, Esq. (Licensed in CA only) Partner | Wright, Finlay &amp; Zak, LLP&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The California Court of Appeals recently published an opinion holding prohibiting charging default interest on the entire unpaid principal balance following a monthly payment default.&nbsp;As you all know, default interest [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"footnotes":""},"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/posts\/4191"}],"collection":[{"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/comments?post=4191"}],"version-history":[{"count":0,"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/posts\/4191\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/media?parent=4191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/categories?post=4191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.californiamortgageassociation.org\/wp-json\/wp\/v2\/tags?post=4191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}