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.
The coalition seeks a court order declaring the OCC rules unlawful and an injunction preventing their implementation.
In-house legal teams should review mortgage servicing agreements, escrow account management contracts, and any agreements with banks or loan servicers to ensure compliance with state escrow interest laws. Specifically, they should examine clauses governing escrow payments, interest accrual, and any provisions that might attempt to preempt state consumer protection statutes. Additionally, they should assess whether their contracts contain provisions that could be affected by OCC preemption rules and whether opt-out or compliance mechanisms are aligned with existing state requirements.
Entity
Office of the Comptroller of the Currency
Industry
Financial ServicesOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-sues-trump-administration-protect-valuable-interest
oregon et al v office of the comptroller of the currency jon
https://ag.ny.gov/sites/default/files/court-filings/oregon-et-al-v-office-of-the-comptroller-of-the-currency-jonathan-v-gould-complaint-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"U.S. Office of the Comptroller of the Currency (OCC)"
"The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) has strict limits on OCC’s ability to preempt state consumer protection laws"
"violating the Administrative Procedure Act (APA)"
"seeking a court order declaring the rules illegal and preventing them from being implemented"
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.
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.
$3.3M
New York Attorney General James announced a multistate settlement with three major egg producers for illegally coordinating to influence a daily egg price index, artificially inflating prices for consumers. The companies will deliver 53 million eggs to food banks and pay $3.3 million, along with adopting compliance measures.
$3.3M
New York Attorney General Letitia James, along with the U.S. Department of Justice and 16 other states, reached a settlement with three major egg producers—Cal-Maine Foods, Versova/Centrum, and Hickman's Egg Ranch—for illegally coordinating to manipulate the Urner Barry price index, artificially inflating egg prices nationwide. The companies will deliver 53 million eggs to food banks across participating states, pay $3.3 million, and adopt compliance measures to prevent future violations.
New York Attorney General Letitia James issued a consumer alert warning New Yorkers about gold bar scams targeting seniors, where scammers trick victims into converting money into gold bars. The alert provides tips to help consumers avoid falling victim to these scams.
$3.3M
New York Attorney General Letitia James announced a multistate settlement with Cal-Maine Foods, Versova/Centrum, and Hickman's Egg Ranch for illegally coordinating to manipulate the Urner Barry egg price index, artificially inflating egg prices. The companies will deliver 53 million eggs to food banks and pay $3.3 million, along with compliance measures.