ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
Home Compliance and Risk

OCC finalizes rules citing federal preemption of state interest-on-escrow laws

May 15, 2026
Reading Time: 2 mins read
OCC proposes to cite federal preemption of state interest-on-escrow laws

The Office of the Comptroller of the Currency today finalized two rules to clarify that national banks are exempt from state laws regulating real estate escrow accounts. Both rules were first proposed late last year.

The first rule codifies longstanding powers of national banks and federal savings associations to establish or maintain real estate lending escrow accounts and to exercise flexibility in making business judgments as to the terms and conditions of such accounts, including whether to offer any compensation paid to customers or to assess any related fees.

The second states that federal law preempts state laws that eliminate national banks’ and federal savings associations’ flexibility to decide whether and to what extent to pay interest or other compensation on funds placed in real estate escrow accounts, or assess fees in connection with such accounts.

New York, California and at least 12 other states and territories have enacted interest-on-escrow laws in recent years. In a statement, the OCC said its actions “emphasize federal preemption as a critical tool for reducing unnecessary burden, enabling local and national prosperity, and unleashing economic growth.”

In January, the American Bankers Association and the Mortgage Bankers Association expressed their support for the proposed rule codifying national banks’ authority to set the terms and conditions of escrow accounts. ABA issued a statement on X following the finalization of the rules, saying that it appreciated the OCC’s commitment to national bank preemption.

“Without clear federal standards, a fragmented patchwork of state requirements would increase consumer costs and limit credit access,” ABA said.

The finalized rules come roughly a week after the U.S. Court of Appeals for the Second Circuit concluded for a second time that New York’s law was preempted by federal law. The U.S. Supreme Court previously vacated the appeals court’s first decision on the matter and sent it back, directing the justices to conduct a “nuanced comparative analysis.”

Tags: EscrowNational Bank ActNational bank preemptionOCC
ShareTweetPin

Related Posts

FDIC withdraws proposed rules on brokered deposits, corporate governance, executive pay

Tioga-Franklin Savings Bank in Philadelphia closed by regulators

Community Banking
August 21, 2026

Pennsylvania regulators closed Tioga-Franklin Savings Bank in Philadelphia and appointed the FDIC as receiver. Second Federal Savings and Loan Association of Philadelphia agreed to assume all deposits and purchase substantially all assets of the bank.

ABA: Proposed customer identification standards for stablecoin issuers need strengthening

ABA: Proposed customer identification standards for stablecoin issuers need strengthening

Compliance and Risk
August 21, 2026

A proposed rule to require payment stablecoin issuers to maintain customer identification programs must go further if it is to reflect those firms’ business models and ensure equal treatment for all financial institutions, ABA said.

ABA suggests splitting proposal to expand Fedwire, NSS operating hours

ABA: International payment transparency standards need more work

Compliance and Risk
August 21, 2026

A recent effort by the Financial Action Task Force to improve cross-border payment transparency is commendable, but there are additional steps the task force should take to reduce operational challenges and preserve a true risk-based approach, ABA said.

ABA Data Bank: U.S. treasury yields hit highest level since 2007

ABA DataBank: Treasury yields retrace buyback drop

Economy
August 21, 2026

The 30-year Treasury yield recently reached a nearly 20-year high amid concerns over the fiscal deficit, AI-related borrowing, and inflation

Bank survey finds finance a major stress point in relationships

Bank survey finds finance a major stress point in relationships

Economy
August 21, 2026

Finances remain a major source of stress in relationships, with nearly three in five people saying they have felt scared or embarrassed to discuss their financial situation with their partner, according to a new survey by TD Bank.

COVID-19 Scams and the Elderly: Inspiring Savvy Seniors

The voice fraud threat to banking

Compliance and Risk
August 21, 2026

How AI-generated impersonation is reshaping the risk landscape as the voice channel remains an important customer-contact method for the banking industry.

NEWSBYTES

Tioga-Franklin Savings Bank in Philadelphia closed by regulators

August 21, 2026

ABA: Proposed customer identification standards for stablecoin issuers need strengthening

August 21, 2026

ABA: International payment transparency standards need more work

August 21, 2026

SPONSORED CONTENT

Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

August 20, 2026
Why Your Systems Keep Slowing Down — and What to Do About It

The exam question a backup can’t answer

August 18, 2026
Beyond Surveillance: Rethinking Security for Modern Financial Institutions

Beyond Surveillance: Rethinking Security for Modern Financial Institutions

August 12, 2026
Relationship Banking at Scale: Why Banks Need The Digital Sales & Service Platform

Relationship Banking at Scale: Why Banks Need The Digital Sales & Service Platform

August 1, 2026

PODCASTS

Could Your Bank Absorb the Hidden Cost of Running Legacy Systems?

August 20, 2026

Podcast: Banking the brave new world of college athletics

August 4, 2026

Podcast: Tactics for meaningful strategic planning

July 28, 2026

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2026 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2026 American Bankers Association. All rights reserved.