Homeowners living in certain states who are required to pay money into escrow accounts as part of their mortgage agreements.
What’s Going On?
Attorneys working with ClassAction.org are investigating whether mortgage lenders are complying with state laws that require them to pay interest on money held in escrow accounts. Citibank has already been sued in California for allegedly failing to pay out this interest.
Which States Require Interest on Escrow Accounts?
California, Connecticut, Iowa, Maine, Maryland, New York, Minnesota, Oregon, Rhode Island, Utah and Vermont.
How Would I Know If I’m Earning Interest?
This interest should show up on your end-of-year mortgage statement. Attorneys working with ClassAction.org are willing to review these statements for you, at no cost, to help determine whether your lender is paying out interest.
Attorneys working with ClassAction.org are looking to hear from anyone who has a mortgage and is required by their lender to put money into an escrow account.
Nearly a dozen states require that up to 2% interest be paid out on these accounts – and now attorneys are looking to file class actions against mortgage lenders that are breaking the law. As part of their investigation, the attorneys need to speak to homeowners to determine which banks, if any, can be sued.
Should My Mortgage Escrow Account Be Earning Interest?
This mostly depends on where you live.
It’s believed that laws in the following states require that interest be paid out on escrow accounts:
Citibank has already been hit with a lawsuit in California over allegations that it failed to pay out the legally required 2% interest on mortgage holders’ escrow accounts.
How Would I Know If My Escrow Account Is Accruing Interest?
You would most likely be able to determine whether your escrow account is accruing interest by looking at your year-end mortgage statement.
As part of their investigation, the attorneys working with ClassAction.org are willing to review your statement, at no cost to you, to help determine whether your account is earning interest – and whether your lender is breaking the law.