Bill · S. 4636· Senate(119-S-4636)
Homeowners’ Escrow Savings Act
- Introduced
- 5/21/2026
- Last activity
- 5/21/2026 — Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- Sponsored by
- Richard Blumenthal
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Homeowners' Escrow Savings Act aims to amend the Real Estate Settlement Procedures Act of 1974. This legislation would require mortgage servicers to pay interest to borrowers on the funds held in their escrow accounts. The interest rate would be based on the weekly average yield on 1-year United States Treasury securities. The bill also updates the definition of "reasonably anticipated" regarding estimated taxes to include various property and tax changes. Additionally, it mandates that escrow account statements be as accurate as possible based on information available to the servicer.
Yes· 3 of 5
Does this give people more protection from unfair business practices?+5
The bill requires mortgage servicers to pay interest on escrow balances and mandates higher accuracy in escrow statements.
Would households on low incomes be better off under this?+3
Providing interest on escrow accounts provides a direct financial return to mortgage holders.
Would middle-income households be better off under this?+3
The bill returns interest to homeowners on the funds held in their escrow accounts.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Interest Payments on Funds: Any servicer with an escrow account for a federally related mortgage loan must pay interest to the borrower (Section 2, subsection (d)(1)). This provides a financial return on the money held by the servifier.
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Defined Interest Rate Calculation: The interest is calculated using the actual average daily balance and an annual rate not less than the weekly average yield on 1-year United States Treasury securities (Section 2, subsection (d)(2)). This provides a specific, benchmarked way for borrowers to receive interest.
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Increased Statement Accuracy: The bill requires that statements regarding escrow accounts be as accurate as possible based on information known or accessible to the servicer (Section 2, subsection (c)(3)). This promotes transparency for the homeowner.
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Protection of State Law Rights: The bill ensures that it does not supersede state laws that require higher interest rates or different methods of payment, such as a check or a credit to the loan balance (Section 2, subsection (d)(4)). This allows citizens to benefit from more favorable state-level protections.
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+3Good For Middle Class Households+3
- Economy And Finance
- Improves Consumer Protection+5
- Governance And Ideology
- Increase States Rights+3
- Social Issues And Justice
- Improves Affordable Housing+3
- 5/21/2026
- Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
- 1 Cosponsor added.
- Introduced in Senate
Elizabeth WarrenDemocrat · Massachusetts