Blumenthal & Warren Introduce Legislation to Save Homeowners Money & Stop Trump Administration from Denying Interest on Escrows

[WASHINGTON, D.C.] – U.S. Senators Richard Blumenthal (D-CT) and Elizabeth Warren (D-MA), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, today introduced legislation to require mortgage servicers to pay interest to homeowners on their escrow balances. Last week, the Trump Administration finalized a rule preempting state “interest-on-escrow laws,” allowing mortgage servicers to benefit from the time value of homeowners’ money sitting in escrow accounts. Blumenthal and Warren’s Homeowners’ Escrow Savings Act (HESA) would reverse this handout to big banks and ensure homeowners across the country are rightfully compensated on their escrow balances, delivering billions of dollars in annual savings to homeowners. “Our measure puts money in the pockets of homeowners—not in the coffers of big banks profiting off consumers’ hard-earned money,” said Blumenthal. “By requiring mortgage servicers to pay homeowners the interest they’re entitled to, our legislation upholds state laws like Connecticut’s that protect consumers and ends the Trump Administration’s giveaway to big banks at the expense of families across the country.” “While Americans are struggling under the weight of sky-high housing costs, the Trump Administration is executing big banks’ wish list by letting them profit off of Americans’ escrow savings,” said Warren. “This bill would put money back in American’s pockets.” HESA is endorsed by the National Consumer Law Center. “Senator Blumenthal’s bill will help address the high cost of homeownership,” said Andrew Pizor, senior attorney at the National Consumer Law Center. “The bill will make escrow payment calculations more accurate while giving borrowers a fair interest rate on their money held in escrow accounts.” The full text of HESA is available here . -30-