Interest Payment Requirements On Mortgage Escrow Accounts
Under Mass. Gen. Laws chapter 183 § 61, any mortgagee who holds a first mortgage on an owner-occupied, 1 to 4 family property in the Commonwealth must pay interest on a real estate property tax escrow account. However, federal law pre-empts Mass. Gen. Laws chapter 183 § 61 in regard to federal-chartered thrift institutions. Therefore, such institutions need not comply with the interest payment or reporting requirements of Mass. Gen. Laws chapter 183 § 61. The Division of Banks, however, does provide the reporting form for any federal savings bank which voluntarily chooses to comply with that requirement.