Homeowners’ Escrow Savings Act

This Act may be cited as the “Homeowners’ Escrow Savings Act”.

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.”.