CA AB2291

Amends Civil Code Section 2954.8 to require financial institutions making one- to four-family residential mortgage loans to pay at least 2% simple interest annually on impound accounts holding borrower funds.

Clarifies that impound account purposes include insurance proceeds received by lenders after catastrophic loss and held for property repairs or rebuilding.

Prohibits financial institutions from imposing fees or charges on impound account maintenance and disbursement that would reduce the effective interest rate below 2% per annum.

Applies to banks, savings and loan associations, credit unions, and other entities making loans secured by one- to four-family residences located in California.

Exempts loans executed before the bill's effective date and moneys required by regulatory authorities to be held in noninterest-bearing demand trust accounts.