Real Estate Lending Escrow Accounts: Notice of Proposed Rulemaking

Summary

The Office of the Comptroller of the Currency (OCC) is issuing a notice of proposed rulemaking to codify longstanding powers of national banks and federal savings associations to establish or maintain real estate lending escrow accounts and to exercise flexibility in making business judgment as to the terms and conditions of such accounts, including whether and to what extent to offer any compensation or to assess any fees related thereto. Comments on all aspects of the proposed rule are due 30 days after it is published in the Federal Register.

Highlights

The proposal would codify that

• the powers of national bank and federal savings associations include establishing and maintaining escrow accounts in connection with real estate loans; and
  
• the terms and conditions of such escrow accounts (including, but not limited to, the investment of escrowed funds, fees assessed for the use of such accounts, and whether and to what extent interest or other compensation is calculated and paid to customers whose funds are placed in the escrow account) are business decisions to be made by each national bank in its discretion.

Further Information

Please contact Karen McSweeney, Special Counsel; Graham Bannon, Counsel; or Priscilla Benner, Counsel, Chief Counsel’s Office, at (202) 649-5490.

Adam J. Cohen
Senior Deputy Comptroller and Chief Counsel

Related Link

• Real Estate Lending Escrow Accounts: Notice of Proposed Rulemaking (PDF)