Nancy Perkins Talks OCC Mortgage Escrow Rules with POLITICO

Nancy Perkins, counsel at Arnold & Porter, was quoted in the recent POLITICO article, “Banks, state regulators and the OCC clash over real estate escrow ruling,” which examined competing federal and state bank regulations regarding whether nationally chartered banks must pay interest on mortgage escrow accounts.

The POLITICO article centers on a proposed rule issued by the Office of the Comptroller of the Currency (OCC) that interprets federal banking statutes as preempting the application to national banks and federal savings banks of state laws requiring the payment of interest on funds held in escrow for real estate property taxes and insurance. The question of whether federal banking law preempts such state requirements has been highly controversial, with state banking regulators claiming the OCC’s position to be an overreach.

Nancy highlighted the ongoing legal uncertainty surrounding the issue, particularly in light of recent court decisions, making this an area to watch in the coming months.

“One thing that could come of this is a split in the circuits about how the [banking preemption] standard applies,” she said.

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