OCC Responds to Multistate Lawsuit Challenging Mortgage Escrow Preemption Actions with Motion to Dismiss or Transfer
The Office of the Comptroller of the Currency (OCC) has filed a motion in response to a multistate lawsuit challenging its recent actions concerning mortgage escrow accounts. The lawsuit, brought by ten states including Oregon, New York, and California, disputes the OCC's May actions: a rule codifying national banks' authority to establish and maintain real estate escrow accounts and determine their terms, and a preemption determination stating that specific state interest-on-escrow laws are preempted by federal law. The OCC's motion presents three procedural paths: dismissal, transfer, or a pause in proceedings while the Supreme Court considers related preemption issues. The agency argues that the plaintiff states lack standing, their claims are not ripe, and they have failed to state a viable Administrative Procedure Act (APA) claim. Alternatively, the OCC requests a transfer of the case to the U.S. District Court for the District of Columbia, citing its headquarters and where the challenged decisions we...
