OCC Files Reply Brief in Lawsuit Challenging Mortgage Escrow Rules, Seeks Dismissal or Transfer to D.C.
The Office of the Comptroller of the Currency (OCC) filed a reply brief on November 2, 2026, supporting its motion to dismiss or transfer to the District of Columbia a lawsuit initiated by Oregon and nine other states. This lawsuit challenges two OCC rules issued on May 15, 2026, concerning the preemption of state interest-on-mortgage escrow laws. The OCC's brief reiterates its initial arguments, particularly targeting what it describes as the states' attempt to establish standing and venue by consolidating their efforts in Oregon to circumvent unfavorable Second Circuit precedent. The litigation, filed in the District of Oregon (Oregon v. Office of the Comptroller of the Currency, No. 3:26-cv-01672-SI), specifically contests the Real Estate Lending Escrow Accounts rule (the Powers Rule) and the Preemption Determination: State Interest-on-Mortgage Escrow Laws. The states argue that the OCC overstepped its authority under the National Bank Act and failed to adhere to restrictions imposed by the Dodd-Frank A...
