Hello,
We are a PA based national Bank that recently opened an office in NY (another to follow). I see there is alot of controversy regarding paying interest on escrow if the bank is a national bank. (National Bank Act preempting NY state law etc). I have two questions: 1) Do we have to pay interest on escrow for residential mortgages written from our NY offices (on NY loan docs or PA docs)? 2) If we previously opened residential mortgages via our PA branches (Pa documents) prior to opening an office in NY, do we now need to revise those escrow agreements to pay interest on that escrow? All of our commerical loans are NY attorney prepared. Any assistance or any guidance on where to find the answer to these two questions is greatly appreciated. thank you so much.

You need to be talking to your legal counsel. I have no idea how you can document loans secured by property in New York on PA documents. You also need to watch the events in the Second Circuit Court of Appeals as the preemption granted National Banks on the payment of interest on NY escrow accounts was remanded back to the Appeals Court for further consideration by SCOTUS this last May.