Public Notice: Department of Financial Institutions Division of Banking
-
Public Notice
Department of Financial Institutions
Division of Banking
Notice of Interest Rate on Required
Residential Mortgage Loan Escrow Accounts
For 20
1
6
Under Section
138.052 (5) (a)
, Stats., with some exceptions, a bank, credit union, savings bank, savings and loan association, or mortgage banker, which originates a residential mortgage loan requiring an escrow account to assure the payment of taxes or insurance, shall pay interest on the outstanding principal of the escrow.
Section
138.052 (5
) (am) 2
.
,
Stats., directs the division of b
anking
to determine annually the required interest rate. The rate is based on the average
of
interest rate
s
paid
on regular passbook deposit accounts by institutions under the division of banking or office of credit unions
’
jurisdiction.
The Department of Financial Institutions, Division of Banking, has calculated the interest rate required to be paid on escrow accounts u
nder Section
138.052 (5)
, Stats.,
to be
0.1
4
%
for 201
6
. This interest rate shall remain in effect through December
31, 2016
.
Contact Person
:
M
s
.
Cheryll Olson-Collins
,
Deputy
Administrator
Department of Financial Institutions
Division of Banking
Telephone (608) 261-7578
