Public notice
Financial Institutions - Savings Institutions
Notice of Interest Rate on Required
Residential Mortgage Loan Escrow Accounts For 2003
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 Department of Financial Institutions, Division of Savings Institutions, to determine annually the required interest rate. The rate is based on the average interest rate paid by Wisconsin depository institutions on passbook savings accounts.
The Department of Financial Institutions, Division of Savings Institutions, has calculated the interest rate required to be paid on escrow accounts under Section
138.052 (5), Stats., to be
1.39% for 2003. This interest rate shall remain in effect through December 31, 2003.
Contact Person:
Mr. Michael J. Mach
Department of Financial Institutions
Telephone (608) 266-0451
