Supreme Court Sends NY Mortgage Rate Case Back to 2nd Cir. (1)

The US Supreme Court ruled that a federal appeals court failed to adequately review whether Bank of America Corp. must abide by a New York law requiring it to pay interest on mortgage escrow accounts.

The unanimous ruling on Thursday in Cantero v. Bank of America Corp. left open the question of whether state requirements that banks pay interest on mortgage escrow accounts are preempted by the National Bank Act, sending the case back to the US Court of Appeals for the Second Circuit for a more nuanced review.

The ruling overturned a 2022 decision from the Second Circuit finding ...