Judge:  National Bank Act Does Not Preempt Maryland Law On Escrow Interest

Mealey's (February 26, 2020, 9:42 AM EST) -- BALTIMORE — A federal judge in Maryland on Feb. 24 denied a majority of Bank of America N.A.’s (BofA) motion to dismiss a class action suit accusing the lender of violating a Maryland law that requires it to pay interest to borrowers on escrow funds for property tax and insurance payments, finding that the law is not preempted by the National Bank Act (NBA) and Office of the Comptroller of the Currency (OCC) regulations because the state law does not interfere with the lender’s ability to conduct real estate loans (Cynthia Clark v. Bank of America N.A., No. SAG-18-3672, D. Md., 2020 U.S. Dist. LEXIS 31454)....