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.
The states seek a court order wiping the OCC's rule off the books, restoring Oregon's interest-on-escrow law, and leveling the playing field between lenders and borrowers.
In-house legal teams at mortgage lenders and servicers should review their mortgage loan agreements and servicing contracts to ensure compliance with state escrow interest laws. The OCC's rule sought to exempt national banks from these requirements, but this lawsuit challenges that rule, so companies should monitor developments and ensure their contracts do not rely on the invalidated rule. Additionally, contracts with third-party servicers should include provisions requiring compliance with applicable state laws regarding escrow interest.
Entity
Office of the Comptroller of the Currency
Industry
Financial ServicesOfficial Press Release
https://www.doj.state.or.us/media-home/news-media-releases/ag-rayfield-sues-to-block-trumps-lawless-handout-to-big-banks/
States escrow interest complaint
https://www.doj.state.or.us/wp-content/uploads/2026/08/States-escrow-interest-complaint.pdf
Oregon Attorney General Enforcement Page
https://www.doj.state.or.us/consumer-protection/
"Office of the Comptroller of the Currency (OCC)"
"Oregon law that requires mortgage lenders to pay interest on the money they require borrowers to deposit into escrow accounts"
"state laws – including Oregon’s – requiring lenders to share the money they earn on borrowers’ escrowed funds"
"The case challenges a decision by a little-known but powerful federal agency, the Office of the Comptroller of the Currency (OCC), to invalidate an Oregon law"
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.
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.
A federal judge ruled that Nexstar Media Group violated a court order requiring it to keep TEGNA Inc. operating as an independent company while a multistate antitrust lawsuit challenging the merger proceeds. The court found that Nexstar installed its own executives on TEGNA's board, failed to disclose the appointments, and lacked candor with the court. The court ordered Nexstar to comply immediately, file status reports, respond to discovery, and turn over board and financial documents, with a special master to oversee compliance.
Oregon Attorney General Dan Rayfield, joined by a coalition of 23 other states, the District of Columbia, and two governors, sued the Trump administration to block a new policy by the Administration for Children and Families (ACF) that would allow federal officials to access private records of millions of TANF recipients. The coalition argues the policy illegally shares sensitive personal data, including Social Security numbers and immigration status, with other federal agencies and private organizations, violating the Administrative Procedure Act and the Spending Clause. The lawsuit seeks to declare the policy illegal and block it from taking effect.
Attorney General Rayfield and a coalition of 49 other attorneys general sent a letter to the FCC urging it to strengthen its Know Your Customer (KYC) rules to combat illegal robocalls. The coalition recommends requiring providers to understand customers' business, applying KYC standards to all providers, and collecting additional information on high-risk customers. No monetary penalty was imposed.
Attorney General Dan Rayfield and 49 other state attorneys general sent a letter to the FCC urging stronger 'Know Your Customer' rules to combat illegal robocalls. The coalition requests that phone companies verify customer identities and business practices to prevent scammers from using the network. The letter is part of Phase 2 of Operation Robocall Roundup.