Cantero v. Bank of America

Questions presented

SCOTUS records, cert granted 13 Oct 2023

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?

Opinion summary

Etalia.ai summary of the majority opinion

The case involved a dispute between Cantero and Bank of America regarding alleged fraudulent practices related to mortgage servicing. Cantero claimed that the bank engaged in deceptive actions, including improper fees and mismanagement of escrow accounts, which led to financial harm. The Supreme Court was tasked with determining whether federal regulations preempted state consumer protection laws under which Cantero sought relief. Ultimately, the Court ruled in favor of Bank of America, holding that federal law did indeed preempt certain state claims due to comprehensive regulatory frameworks established by federal banking authorities designed to ensure uniformity across states.