OCC Exempts National Banks From State Escrow Interest Laws (1)

May 15, 2026, 7:22 PM UTCUpdated: May 15, 2026, 9:24 PM UTC

A US banking regulator blocked states from forcing national lenders to pay interest on mortgage escrow accounts, as federal courts wrestle with a Supreme Court decision that left open questions around preemption of state law.

A final rule issued Friday by the Office of the Comptroller of the Currency exempts national banks such as the depository units of Bank of America Corp., JPMorgan Chase & Co., and Citigroup Inc. from mortgage escrow interest laws enacted by New York and about a dozen other states.

It would also relieve national banks from following similar laws adopted by Guam and ...

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