States sue OCC over federal escrow rules that could curb mortgage interest
Ten state attorneys general filed a lawsuit in Oregon to invalidate two OCC rules that let federally regulated banks decide whether to pay interest or charge fees on mortgage escrow accounts and preempt state escrow laws. The suit argues the OCC exceeded its authority; about 14 states require escrow interest, and the rules could reduce interest on escrow balances used for taxes and insurance, though outcomes may depend on jurisdiction and wildcard statutes. The rules took effect June 18.
