Usury Expert Witness: California Mortgage Litigation Questions

[Joffrey Long]

This post relates primarily to California:

Hard money loans are often made at rates that exceed usury interest limitations. On hard money loans, California trust deeds can be exempt from usury interest limitations under certain conditions.

I'm looking for feedback from anyone else who has seen cases involving claims of usurious real estate loans, or loans with (claims that) interest rates that exceeded the maximum interest rates under usury.

Of particular interest to me are cases where a lender or broker claimed a specific exemption from usury limitations, or cases where testimony from a "usury expert witness" or other type of mortgage lending expert witness was considered. Often, under section 1916.1 of the civil code, an exemption from usury is claimed for real estate loans made or arranged by a broker.

In my business as a hard money lender, my interest rates are generally below usury levels, but as a mortgage expert witness, I see many cases that exceed the usury interest limitations, and then for some reason or another, have turned into cases of mortgage litigation related to usury.

This is a very specific area, so references to cases specifically involving claims of usury would be most helpful.

Thanks, in advance, for any information you're able to share.

Joffrey Long