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

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 ...