Supreme Court Agrees to Decide If Federal Banking Laws Supersede State Banking Laws

Homeowners who support a pro-consumer law in New York say that there could be legal uncertainty and market instability if federal law preempts state laws.
Supreme Court Agrees to Decide If Federal Banking Laws Supersede State Banking Laws
An ATM machine outside of a Bank of America branch in Chicago on April 9, 2019. Scott Olson/Getty Images
Matthew Vadum
Updated:
0:00

The Supreme Court has agreed to consider whether a federal banking law preempts a New York state law that compels banks to pay interest on mortgage escrow accounts.

The case comes at a time of turmoil in the mortgage markets. Mortgage loan borrowing costs soared earlier this month to their highest point in 23 years.
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