S4636Referred to Committee

A bill to amend the Real Estate Settlement Procedures Act of 1974 to provide for interest on escrow balances.

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2026-05-21
Introduced
1
Cosponsors
S
ⓘ
Type

Sponsor

Richard Blumenthal
Richard Blumenthal
Democrat · CT · Senator
Votes with party: 64.1% (320 recorded votes)

Full profile: /officials/B001277

Source: Congress.gov · FEC

Cosponsors (1)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

2026-05-21

Source: Congress.gov

Committee Activity

Currently in

Plain-English Summary

The proposal would require mortgage lenders and servicers to pay interest on money that homeowners place in escrow accounts—accounts where funds are held to cover future property taxes and insurance payments. Currently, lenders typically hold these escrow balances without paying any interest, meaning homeowners lose out on potential earnings from their own money. The change would benefit homeowners by allowing them to earn modest returns on funds that are held in their accounts.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

Full Bill Text

Verbatim text published on Congress.gov via GovInfo. Use Cmd+F / Ctrl+F to search within this excerpt.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4636 Introduced in Senate (IS)] <DOC> 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.''. <all>
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