S. 4636

119 S4636 IS: Homeowners’ Escrow Savings Act
 U.S. Senate
 2026-05-21
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  2d Session  S. 4636  IN THE SENATE OF THE UNITED STATES   May 21, 2026   Mr. Blumenthal  (for himself and  Ms. Warren ) introduced the following bill; which was read twice and referred to the  Committee on Homeland Security and Governmental Affairs    A BILL
To amend the Real Estate Settlement Procedures Act of 1974 to provide for interest on escrow balances.
1.
Short title
This Act may be cited as the   Homeowners’ Escrow Savings Act  .
2.
Interest on escrow balances
The Real Estate Settlement Procedures Act of 1974 ( 12 U.S.C. 2601 et seq. ) is amended—
(1)
in section 3 ( 12 U.S.C. 2602 )—
(A)
in paragraph (8), by striking  and  at the end;
(B)
in paragraph (9), by striking the period at the end and inserting  ; and ; and
(C)
by adding at the end the following:
(10)
the term  reasonably anticipated  means, with respect to estimated taxes—
(A)
any reassessment of the property value that may be anticipated based on the experience of the servicer or local custom;
(B)
any significant improvements made or to be made to the property;
(C)
any known future changes in the applicable tax rate;
(D)
any exemptions or other adjustments for which—
(i)
the borrower may be eligible; and
(ii)
the borrower has notified the servicer;
(E)
any other relevant information available to the servicer; and
(F)
any other factor that the Bureau may require.
 ; and
(2)
in section 10 ( 12 U.S.C. 2609 )—
(A)
in subsection (c), by adding at the end the following:
(3)
Accuracy
Any statement required under this subsection shall be as accurate as possible, based on information reasonably known or accessible to the servicer.
 ;
(B)
by redesignating subsection (d) as subsection (e); and
(C)
by inserting after subsection (c) the following:
(d)
Payment of interest on funds in escrow
(1)
In general
Any servicer that has established an escrow account in connection with a federally related mortgage loan shall pay interest to the borrower on the funds in the escrow account in accordance with paragraph (2).
(2)
Calculation
(A)
In general
The interest described in paragraph (1) shall be determined by multiplying the actual average daily balance for each month, by the quotient obtained by dividing the annual rate described in subparagraph (B) by 12.
(B)
Annual rate
The annual rate described in this subparagraph shall be not less than the weekly average yield on 1-year United States Treasury securities for such year and rounded to the nearest tenth of a percentage point.
(3)
Credit
Any interest credited under this subsection shall be credited to the escrow account when the servicer issues the statement required by subsection (c)(2).
(4)
Effect on State law
Nothing in this subsection may be construed to preempt or supersede any State law that requires—
(A)
an interest rate higher than the interest rate calculated under this subsection; or
(B)
the payment of interest in a different manner, including by check or as a credit to the loan balance, that is provided by this subsection.
 .