WASHINGTON, Dec. 30 -- Office of the Comptroller of the Currency has issued a proposed rule called: Preemption Determination: State Interest-on-Escrow Laws.
The proposed rule was published in the Federal Register on Dec. 30 by Jonathan V. Gould, Comptroller of the Currency.
Summary: The OCC is proposing to issue a preemption determination concluding that federal law preempts state laws that eliminate OCC-regulated banks' flexibility to decide whether and to what extent to (1) pay interest or other compensation on funds placed in real estate escrow accounts; or (2) assess fees in connection with such accounts. This preemption determination would provide much needed clarity to banks and other stakeholders.
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