Seiter v. Veytia

OPINION

RAY, Justice.

The issue presented by this usury case is whether federal law, which eliminates interest rate limitations on loans secured by first liens on residential real property, preempts state-imposed interest rate ceilings. The trial court granted summary judgment on the ground that Tex.Rev. Civ. Stat.Ann. art. 5069-1.06 (Vernon 1987), is preempted by 12 U.S.C. 1735f-7 (1980). The court of appeals declined to reach the question of whether federal law preempts. Instead it reversed and remanded by holding that the federal statute was not intended to include late charges, which are…