Supreme Court to consider scope of preemption under National Bank Act

The Supreme Court on Friday agreed to hear a case called Cantero v. Bank of America, concerning preemption under the National Bank Act. The petition describes the issue this way: “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). The question presented is: Does the National Bank Act preempt the application of state escrow-interest laws to national banks?”

The case will be briefed this fall, and oral argument will likely be in February. The docket, with links to the petition-stage briefing, is here.

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