Federal Banking Laws Should Override State Laws, Supreme Court Hears

Homeowners argue New York’s law requiring banks to pay interest on escrow accounts should be upheld.

A sign stands in front of a Bank of America branch in Washington, on Aug. 21, 2014. Saul Loeb/AFP via Getty Images

The Supreme Court considered on Feb. 27 whether federal law overrides a New York state law that compels banks to pay interest on mortgage escrow accounts.

The justices heard oral arguments in the case known as Cantero v. Bank of America.