SenateS. 4636119th Congress
Homeowners’ Escrow Savings Act
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4636 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 4636
To amend the Real Estate Settlement Procedures Act of 1974 to provide
for interest on escrow balances.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Homeowners' Escrow Savings Act''.
SEC. 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.''.
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