August 18 - California Passed Bill That Guarantees Interest on Escrowed Insurance Payouts

California homeowners recovering from catastrophic losses, including the January wildfires, will now be guaranteed at least 2% interest on insurance settlement funds held in escrow by mortgage lenders. Previously, insurers’ checks sent to both homeowners and lenders could earn interest in the account that the lender kept. The new legislation, passed by the state legislature and headed to Gov. Newsom’s desk for signature, ensures homeowners receive interest on these funds, including for existing escrowed payouts.