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

By Dean Seal (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...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!