Escrow Interest Lawsuit Investigation: Does Your Mortgage Lender Owe You Money?

Many consumers are discovering that their mortgage lenders have not been paying them escrow interest, and lawyers are investigating the possibility of a lawsuit investigation over the issue. This could help consumers recoup interest payments that they should have received from money held in escrow.

If your mortgage lender does not pay you interest on funds kept in your escrow account that is used for paying property taxes and insurance, you may have a legal claim regarding that escrow interest. 

Many states have laws that required mortgage lenders to pay interest on funds held in escrow because the money is still technically owned by the mortgage borrower, so is eligible to accrue interest. However, many mortgage lenders allegedly do not pay borrowers interest on money held in escrow, and lawyers are now attempting to hold the mortgage lenders accountable for not complying with the law.

This escrow interest lawsuit investigation could help consumers recover money that they are due. You may qualify for an escrow interest lawsuit investigation if you all three of the following circumstances apply to you: if you are required by your mortgage lender or servicer to pay money into an escrow account, and that money is then used to pre-pay your property taxes and/or property insurance, your mortgage lender or servicer did not pay you interest on funds they required you to hold in escrow, and you live in one of the following 14 states:

• California
• Connecticut
• Iowa
• Maine
• Maryland
• Massachusetts
• Minnesota
• New Hampshire
• New York
• Oregon
• Rhode Island
• Utah
• Vermont
• Wisconsin

The problem of unpaid escrow interest may be more common than many people realize. In fact, millions of homeowners may not have been paid escrow interest but were legally entitled to it.

Escrow Interest Lawsuits

Consumers have already begun to hold mortgage lenders and servicers accountable for not paying escrow interest when they should have. Recently, two New York consumers have filed a lawsuit against Bank of America for allegedly not paying escrow interest that was due to them.

Plaintiffs Saul H. and Ilana H. claim that under New York General Obligation law, because the money held in escrow by Bank of America is still the borrower’s money while it is in escrow, Bank of America owes the borrowers at least two percent in interest on the funds in escrow.

Allegedly, the two customers purchased a New York home and took out a mortgage with Bank of America. Allegedly, they were required to make monthly payments into an escrow account for property taxes and insurance on the property.

Saul and Ilana claim that during the times during which they had an escrow account with Bank of America, the company did not pay any interest on the escrow funds.

Saul and Ilana’s Bank of America escrow interest lawsuit aims to represent all consumers in states whose laws require mortgage lenders to pay escrow interest and who were improperly not paid interest on escrow funds by Bank of America.

The Bank of America Escrow Interest Denial Class Action Lawsuit is Case No. 2:18-cv-02352-JFB-ARL, in the U.S. District Court for the Eastern District of New York.

Join a Free Mortgage Escrow Account Class Action Lawsuit Investigation

Mortgage borrowers in certain states whose lenders required them to pre-pay their property taxes or property insurance through an escrow account and who did not receive interest on those escrowed funds may qualify to join this mortgage escrow account class action lawsuit investigation.

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