Attorneys general from seven states charged that mortgage lenders are charging homeowners excess escrow payments.

Both have called for vacancy decontrol, mandatory escrow payments during housing disputes and tougher penalties against landlords who harass tenants.

But the law limits the excess escrow payments to two months' worth of anticipated escrow charges.

The bank promised to investigate, Dr. Copeland recalled, and advised the couple to suspend the escrow payments.

The bank also agreed to change its future escrow accounting methods and refund about $30 million in excess escrow payments.

He refused to post a $1,600 escrow payment for an engineering inspection, saying the bill was padded.

But she did not make the first escrow payment, and on Christmas Eve a warrant for her arrest was issued.

In addition, the accounting procedures required by the new regulations are also expected to reduce the escrow payments that many borrowers pay on a monthly basis.

Monthly escrow payments are adjusted each year to account for such changes, he said.

In other states, lenders typically collect an amount that, at year's end, equals one or two months of escrow payments.