Finance
Texas usury laws prohibit charging interest rates that exceed the legal maximum. Under Texas Finance Code, most real estate loans are subject to:
AA maximum rate of 10% per year
BFederal usury preemption for most mortgage loans, with state caps applying to some consumer loans✓ Correct
CTREC-set maximum rates
DNo interest rate limits whatsoever
Explanation
Federal law (Depository Institutions Deregulation and Monetary Control Act of 1980) largely preempted state usury limits for federally chartered and insured lenders on first mortgage loans. Most Texas mortgage loans are subject to federal preemption. Texas Finance Code still has usury provisions for loans not covered by federal preemption.
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