Robert and Jennifer Grunbeck v. The Dime Savings Bank of New York, Fsb

CYR, Circuit Judge.

The interesting issue of first impression presented in this case is whether section 501(a)(1) of the Depository Institutions Deregulation and Monetary Control Act of 1980, 12 U.S.C. § 1735f-7a(a)(1) (1988) (“Monetary Control Act”), preempts New Hampshire Rev.Stat.Ann. § 397-A:14(I) (West Supp. 1994) (“Simple Interest Statute” or “SIS”). In a thoughtful and comprehensive opinion, the district court ruled that the Simple Interest Statute, as applied to a residential mortgage loan permitting negative amortization, is preempted by section 501(a)(1).

I

BACKGROUND

On January 15,…