Supreme Court gives homeowners another chance in escrow dispute with Bank of America

WASHINGTON (AP) — The Supreme Court has given homeowners another chance to force Bank of America and other large banks to pay interest on mortgage escrow accounts. The court unanimously threw out an appeals court ruling in favor of Bank of America, which has refused to pay interest on money it collects to pay borrowers’ insurance and property tax bills. New York requires banks to pay at 2% interest on escrowed funds. Similar laws are in effect in another 13 states. Justice Brett Kavanaugh wrote for the court in rejecting the appellate ruling that federal law governing national banks does not permit such state-by-state regulation.