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Ten states sue over federal rules on mortgage escrow interest payments
The states are challenging an Office of the Comptroller of the Currency rule that would stop them from enforcing laws requiring national banks to pay interest on homeowners’ escrowed funds.
Mortgage News Daily reports that ten states have sued the Office of the Comptroller of the Currency over new federal escrow rules tied to mortgage escrow accounts held by national banks.
The dispute centers on whether national banks must pay homeowners interest on money held in mortgage escrow accounts, with the federal approach limiting states’ ability to enforce their own escrow interest requirements.
The coverage also notes that while the 21st Century ROAD to Housing Act passed both chambers with overwhelming bipartisan support and became law, implementation work is largely shifting to federal agencies tasked with turning new housing policies into practice.
Mortgage News Daily adds that lawmakers are largely away on campaign or vacation activities leading up to election day, leaving the execution of dozens of new policies to agencies during that period.