Supreme Court to Hear Oral Argument in National Bank Act Preemption Case

The U.S. Supreme Court will hear oral argument in the National Bank Act (NBA) preemption case on February 27, 2024.  The question before the Supreme Court is whether the NBA preempts a New York law that requires lenders to pay 2% interest on mortgage escrow accounts.

In October 2023, the Supreme Court granted a consumer’s petition for certiorari to review a Second Circuit decision holding that the NBA preempted the New York law.  That decision represents a split from the Ninth Circuit and its 2019 decision holding that a similar law in California was not preempted.

WBK’s previous coverage of the Supreme Court grant of certiorari review can be found here, the Second Circuit decision can be found here, and it’s coverage of the Ninth Circuit decision can be found here and here.