This bill, known as the "Homeowners' Escrow Savings Act," amends the Real Estate Settlement Procedures Act of 1974 (RESPA) to require mortgage servicers to pay interest on funds held in escrow accounts. This change aims to provide a financial benefit to homeowners by ensuring they receive a return on the money deposited for property taxes and insurance. A central provision mandates that servicers calculate interest based on the actual average daily balance in the escrow account. The annual interest rate would be set at not less than the weekly average yield on 1-year United States Treasury securities , rounded to the nearest tenth of a percentage point, and credited when the annual statement is issued. The legislation also defines "reasonably anticipated" for estimated taxes, encompassing factors like property reassessments and future tax rate changes. Importantly, it clarifies that this federal requirement does not preempt any state law mandating a higher interest rate or a different method of interest payment.