Oral Argument: Cantero v. Bank of America, N.A. | Case No. 22-529 | Date Argued: 2/27/24 | Date Decided: 5/30/24

Link to Docket: Here.

Background:

At least thirteen states have, enacted laws requiring mortgage lenders to pay a minimum interest rate on funds held in mortgage escrow accounts. Congress has since recognized the existence of these state escrow-interest laws and has expressly required national banks to comply with them where applicable. See 15 U.S.C. § 1639d(g)(3).

Question Presented: Does the National Bank Act preempt the application of state escrow-interest laws to national banks?

Holding: The U.S. Court of Appeals for the 2nd Circuit failed to analyze whether New York's interest-on-escrow law is preempted as applied to national banks in a manner consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and Barnett Bank of Marion Cty., N. A. v. Nelson.

Result: Vacated and remanded.

Voting Breakdown: 9-0. Justice Kavanaugh delivered the opinion for a unanimous Court.

Link to Opinion: Here.

Oral Advocates:

• For Petitioner: Jonathan E. Taylor, Washington, D.C.; and Malcolm L. Stewart, Deputy Solicitor General, Department of Justice, Washington, D.C. (for United States, as Amicus Curiae.)
• For Respondent: Lisa S. Blatt, Washington, D.C.