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OCC Bulletin 2026-20 | May 15, 2026

Real Estate Lending Escrow Accounts: Final Rule

To

Chief Executive Officers of All National Banks, Federal Savings Associations, and Federal Branches and Agencies; Department and Division Heads; All Examining Personnel; and Other Interested Parties

Summary

The Office of the Comptroller of the Currency (OCC) is issuing a final rule 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 judgments 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.

Note for Community Banks

The final rule applies to all community banks.1

Highlights

  • The final rule codifies that (1) the powers of national banks and federal savings associations include establishing and maintaining escrow accounts in connection with real estate loans; and (2) the terms and conditions of such escrow accounts (including, but not limited to, the investment of escrowed funds, fees assessed for the provision 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 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

1 “Banks” refers collectively to national banks, federal savings associations, covered savings associations, and federal branches and agencies of foreign banking organizations. OCC News Release 2025-89 (September 18, 2025) identifies “community banks” as institutions with up to $30 billion in assets.

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