BofA To Settle Calif. Mortgage Escrow Interest Suit For $35M

Law360 (January 2, 2020, 3:42 PM EST) -- Bank of America NA has agreed to pay $35 million to resolve a proposed borrower class action accusing it of ignoring a California requirement to pay interest on mortgage escrow accounts.

The settlement, first revealed in October, amounts to about 75% of the escrow interest the bank allegedly failed to pay California borrowers, and would resolve a years-old case that raised questions about national bank preemption powers and nearly reached the U.S. Supreme Court.

“In negotiating the settlement, the parties and their counsel were thus well informed about the issues, the relative strengths and weaknesses of their respective positions, and about...

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