The Homeowners' Escrow Savings Act would require mortgage servicers to pay interest on escrow account balances held for homeowners. Under current law, servicers hold escrow funds for property taxes and insurance but pay borrowers no interest on these accounts. This bill would change that by requiring servicers to credit interest annually based on the weekly average yield of one-year U.S. Treasury securities, rounded to the nearest tenth of a percentage point. The legislation would affect homeowners with federally-related mortgage loans and the servicers that manage their escrow accounts. The bill also clarifies what mortgage servicers should consider when estimating property taxes and requires them to make escrow statements as accurate as possible, while allowing states to maintain higher interest rate requirements if their laws already provide them.
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