Ten state attorneys general filed a lawsuit on June 18, 2025, against the Office of the Comptroller of the Currency (OCC) to invalidate two rules allowing federal banks to sidestep state laws requiring interest payments on mortgage escrow balances. Approximately 80% of American mortgage holders have escrow accounts, where they deposit monthly funds to cover property taxes and homeowners insurance. Fourteen states and U.S. territories currently mandate interest on these accounts, with rates varying significantly from 0.63% (average savings account rate) to nearly 4% (one-year Treasury yield). The plaintiff states argue the OCC exceeded its authority and are relying on legal precedent to support their position.
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