ND HB1378

Requires lenders to pay interest on residential mortgage escrow accounts with a minimum average balance of $500 that have been open for at least three months

Sets a minimum interest rate of 0.5% annually on escrow funds, with rates tied to prevailing market rates for savings or similar deposit accounts

Mandates lenders disclose escrow fund management details, interest rates, and crediting methods in mortgage agreements and periodic statements

Allows borrowers to opt-out of interest payments only if explicitly permitted in the mortgage agreement and in exchange for a reduced mortgage rate or other benefit

Applies to new escrow accounts upon the Act's effective date, with existing accounts required to begin receiving interest payments on January 1, 2026