Does anyone know in New York are we required to put Residential Escrow in an interest bearing account? We are a National Bank. Thanks

Interest Rate (and period to which applicable):
2% per year. [NY Gen. Oblig. Law § 5-601.] See http://public.leginfo.state.ny.us/menugetf.cgi.

Can someone advise if a mortgagor is delinquent or in default, is the mortgage servicer still required to pay interest on the escrow account?

I see no such exception.

Thank you, I wanted to be sure I didn't miss anything.

We are a bank chartered in the state of Pennsylvania with branches and collateral in the state of NY. Does anyone know is this escrow requirement refers to the collateral, the borrower, or the branch that originated it is in the state of New York?

For example, a PA state resident purchases a second home in NY, or a New York resident purchases a second home in PA.

Thank you!