Bank of America Escrow Interest Dispute Gets Supreme Court Look

The US Supreme Court will consider whether states can force banks to pay interest on mortgage escrow accounts.

In an order Friday, the justices agreed to hear a case involving Bank of America challenging New York’s escrow interest law. Thirteen states, including California, have this law on the books to protect borrowers.

New York requires banks to pay at least 2% interest on escrow accounts that hold the extra money borrowers pay to cover property taxes and insurance.

The Supreme Court is being asked if the laws apply to national banks or whether they are preempted by the National Bank ...