Flagstar Bank asked the full US Court of Appeals for the Ninth Circuit to review a decision that allowed a California law requiring interest payments on mortgage escrow accounts to apply to national banks.
The National Bank Act didn’t preempt California’s law, which requires all banks operating in the state to pay 2% interest on mortgage escrow accounts, a split Ninth Circuit panel ruled in October.
But that ruling didn’t properly follow a framework the US Supreme Court set up in its May 2024 decision in Cantero v. Bank of America NA, Flagstar said in its Monday petition for ...