If Your Mortgage Company is Not Paying Interest On Your Tax & Insurance Impound Account, They Have Likely Violated California Law
California laws and bills, including SB-633 Mortgages: Impound Accounts (2009-2010), require mortgage companies with escrow impound accounts to pay interest on money collected and held for borrowers. An escrow impound account is the account set up by the mortgage company to pay your taxes, insurance, and other items through collecting in advance those amounts in monthly payments. In most cases, the mortgage company requires the borrower to create the impound escrow account, although, sometimes it is an option selected by the borrower.
Have you not received any interest payments from your mortgage company due to your escrow impound account for your one-to-four family residence or residences? Do you live in California, and was the escrow impound account created after 2010? You might have a case against your mortgage company. Call (909) 345-8110 to talk to McCune Wright Arevalo, LLP and our mortgage consumer lawyers. We are headquartered in the Inland Empire but represent clients throughout California.
A Number of Mortgage Companies Have Been Violating California Law
Many mortgage companies have been openly violating California law and not paying required interest to mortgage consumers. Mortgage and banking consumer lawyer Richard McCune of McCune Wright Arevalo, LLP — who already has under his belt a $203 million verdict against Wells Fargo for their breaking of California laws related to overdraft fees — has filed a lawsuit against Bank of America for its blatant violations of escrow impound account laws. The case went all the way up to the United States Supreme Court, and the ruling stated Bank of America had to follow California law.
The groundbreaking litigation result means any mortgage company that has not been paying borrowers interest on impound escrow accounts has likely been breaking California law. As such, they will be required to pay customers back all the interest that went to their shareholders instead of back to the borrowers. Litigation led by a team such as McCune Wright Arevalo, LLP will likely be needed to make these companies comply.
Consumer Class Action Lawsuits Are Being Filed Against Mortgage Companies That Have Been Violating California Law
Richard McCune of McCune Wright Arevalo, LLP is now investigating and will be bringing class action lawsuits against other mortgage companies, big or small, who have been violating this law and not paying interest on escrow impound accounts. Even though individually the amount of interest per year may be small, together the mortgage companies have been making hundreds of millions of dollars of unfair and illegal profit on the money. It is not known at this time which mortgage companies have violated California escrow impound account law, which means any mortgage company could be a “suspect” in this ongoing situation.
Companies who offer escrow impound accounts in California include but are not limited to*:
- Quicken Loans/Rocket Mortgage by Quicken Loans
- JPMorgan U.S. Bank Home Mortgage
- Chase Home Loans
- PHH Mortgage
- Better Mortgage
- J.G. Wenworth
- Freedom Mortgage Corporation
- New American Funding
- Caliber Home Loans
(* This list of mortgage companies does not establish or imply any wrongdoing on behalf of the companies listed within.)
How You Can Determine If Your Mortgage Company Has Paid Interest On Your Impound Escrow Account
You should look for in your financial information between 2016 and 2017. At least once a year, your mortgage company is required to send you an annual escrow account disclosure statement that would indicate on it if you were paid interest. This statement is likely the document you used to determine the amount of real estate taxes you paid for tax purposes.
Once you find the document, look to see if there is any interest referenced. Specifically, if your mortgage company is paying interest, the account activity or history section would show an interest payment. If nothing is listed, your mortgage company is likely violating California law and not paying interest on your impound account.
If you cannot find the correct document, you should be able to get it online from your mortgage company. Alternatively, call McCune Wright Arevalo at (909) 345-8110, speak with our Inland Empire complex litigation attorneys, and we will help you find the information.
If My Mortgage Company Has Not Been Paying Interest On My Impound Escrow Account, What Should I Do?
You should immediately contact McCune Wright Arevalo, LLP by using a convenient online contact form. You can also call us at (909) 345-8110 to discuss the situation in a free, over-the-phone consultation. Our team will likely require your annual escrow account disclosure statement to get a clear picture of your potential case. We will help you determine your legal rights and explain how to collect damages from the mortgage company, if possible. We look forward to hearing from you.