Attorney General William Tong and a coalition of 10 attorneys general filed a lawsuit challenging a new OCC rule that preempts state laws requiring national banks to pay interest on homeowners' mortgage escrow accounts. The lawsuit argues the OCC ignored federal court decisions and bypassed safeguards, and seeks to block the rule.
The coalition seeks to block the OCC rule and preserve state authority to require interest payments on mortgage escrow accounts.
In-house counsel for financial institutions should review mortgage servicing agreements and escrow account provisions to assess reliance on federal preemption of state interest-on-escrow requirements. They should also review vendor contracts with national banks for clauses related to regulatory compliance and changes in law, and consider whether state escrow interest laws apply to their operations. If the lawsuit succeeds, banks may need to implement systems to track and pay interest on escrow accounts, so contracts with loan servicers should allocate responsibility for such payments and compliance.
Entity
Office of the Comptroller of the Currency
Industry
Financial ServicesOfficial Press Release
https://portal.ct.gov/ag/press-releases/2026-press-releases/attorney-general-william-tong-sues-to-block-lawless-handout-to-big-banks
states escrow interest complaint.pdf?rev=625aec749a9a4eb3b51
https://portal.ct.gov/-/media/ag/press_releases/2026/states-escrow-interest-complaint.pdf?rev=625aec749a9a4eb3b519a52084939f83&hash=A843E9E4F04B3A3690D8F53434E570C9
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"filed a lawsuit today opposing a new rule issued by federal regulator of national banks, the Office of the Comptroller of the Currency (OCC), that would strip states of their authority to require national banks to pay interest on homeowners’ mortgage escrow accounts."
"Joining Attorney General Tong in filing this lawsuit are the attorneys general of California, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, and Vermont."
"Attorney General William Tong and a coalition of 10 attorneys general filed a lawsuit today opposing a new rule"
Nine state attorneys general, led by New York AG Letitia James, sued the U.S. Office of the Comptroller of the Currency (OCC) to stop two rules that preempt state laws requiring banks to pay interest on escrow accounts. The coalition argues the rules exceed OCC's authority under Dodd-Frank and the Administrative Procedure Act. The suit seeks a court order declaring the rules illegal and preventing their implementation.
Oregon Attorney General Dan Rayfield co-led a coalition of 10 states in a federal lawsuit against the Office of the Comptroller of the Currency (OCC) to block a rule that invalidates state laws requiring mortgage lenders to pay interest on escrow accounts. The lawsuit argues the OCC's rule oversteps federal authority, gives national banks a competitive advantage over state-chartered banks, and takes money away from homeowners.
Connecticut Attorney General William Tong joined a coalition of 22 attorneys general and Pennsylvania’s governor in a letter urging HHS to keep federal vaccine recommendations grounded in scientific and medical evidence. The letter asks HHS to preserve the ACIP’s role and current vaccine recommendation categories; it is a policy advocacy action, not a privacy enforcement action.
$2.3M
Connecticut Attorney General William Tong led a 44-attorney-general coalition settlement with Laboratory Corporation of America over the 2019 AMCA breach, which potentially exposed personal information of more than 27.5 million people, including 10.2 million Labcorp patients. Labcorp will pay $2,287,455 and implement enhanced vendor-risk management, information-security, and oversight measures.
Connecticut Attorney General William Tong joined a bipartisan coalition of 25 attorneys general in a letter urging Congress to regulate AI development and preserve states’ authority to oversee the industry. The letter cites reports of AI agents escaping testing environments and performing dangerous or unlawful actions; it announces no enforcement action or penalty.
Connecticut Attorney General William Tong joined other state attorneys general in suing the federal government over deals that canceled offshore wind leases in exchange for payments to Bluepoint Wind and Invenergy. The states allege the deals unlawfully used taxpayer funds and failed to follow required procedures, and ask the courts to invalidate the deals and block their implementation.