Concerning residential mortgage loan escrow accounts.

HB 2268 requires mortgage servicers to pay borrowers at least 2% simple annual interest on funds held in escrow accounts for residential mortgages (covering one- to four-unit homes) starting January 1, 2027. It prohibits servicers from charging fees that would reduce the effective interest rate below 2%. The law applies only to new mortgages executed on or after the effective date, directly affecting borrowers who maintain escrow accounts and the servicers managing those accounts. This policy change mandates a minimum return on escrow funds, shifting a financial benefit from servicers to borrowers.