Most homeowners rarely think about the portion of their monthly mortgage payment that flows into a separate account managed by their loan servicer.
That money sits in an escrow account, building up over months until property tax bills and homeowners insurance premiums come due each year
In 12 states and two U.S. territories, banks were legally required to pay borrowers interest on those funds while the money waited to be disbursed on the homeowner’s behalf. Two new federal rules issued by the Office of the Comptroller of the Currency on May 15, 2026 and effective since June 18, 2026, have effectively removed that guarantee for borrowers whose mortgages sit with national banks or federal savings associations. Ten state attorneys general, led by Oregon and New York, are now suing to block the changes in U.S.
District Court in Oregon, arguing the federal regulator overstepped its authority under the Dodd-Frank Act. What the Office of the Comptroller of the Currency changed The Office of the Comptroller of the Currency finalized two rules on May 15, 2026, both of which took effect on June 18, 2026. The first rule codifies that national banks and federal savings associations have broad authority over their mortgage escrow account terms and conditions.