Under 138.052(5)(am), Wis Stats., interest must be paid on required escrow accounts established in connection with residential mortgage loans that were originated before April 18, 2018. The interest rate to be paid on these accounts is established annually by the Wisconsin Department of Financial Institutions (DFI). DFI has calculated the interest rate to be paid on such accounts to be 0.18% for 2019. The interest rate shall remain in effect through Dec. 31, 2019.
Wisconsin Bankers Association was instrumental in the passage of 2017 Wisconsin Act 340, which eliminated the requirement to pay interest on required escrow accounts established in connection residential mortgage loans that are originated on or after April 18, 2018.
This is a big win for the industry. DFI’s notice may be viewed here: http://www.wdfi.org/_resources/indexed/site/fi/banks/EscrowNotice.pdf