OCC Proposes Freedom for Banks in Real Estate Escrows
Published Date: 12/30/2025
Proposed Rule
Summary
The OCC is proposing a new rule to officially confirm that banks can set up and manage real estate lending escrow accounts however they see fit, including deciding on fees or compensation. This affects national banks and federal savings associations, giving them more freedom to use their business smarts. If you want to share your thoughts, make sure to comment by January 29, 2026!
Analyzed Economic Effects
4 provisions identified: 4 benefits, 0 costs, 0 mixed.
Banks can set escrow terms freely
The OCC proposes to formally allow national banks and Federal savings associations to establish and maintain real estate lending escrow accounts and to decide the terms and conditions for those accounts themselves. This includes decisions about investing escrowed funds, assessing fees for escrow accounts, and whether and to what extent to calculate or pay interest or other compensation to customers.
May encourage more mortgage lending
The OCC states that codifying banks' flexibility over escrow accounts could reduce uncertainty and may incentivize increased bank mortgage lending. The proposal notes escrow accounts are used in about 80% of U.S. residential mortgages, indicating the rule touches a large portion of mortgage activity.
No new costs for small institutions
The OCC states the proposed rule would not impose new mandates or direct costs on OCC‑supervised institutions and certifies under the Regulatory Flexibility Act that it would not have a significant economic impact on a substantial number of small entities. The OCC reports it currently supervises 1,005 institutions and estimates about 609 are small entities under the RFA thresholds.
Some states require escrow interest
The document lists states that require their state‑chartered banks to pay specified interest amounts on mortgage escrow accounts: CA, CT, ME, MD, MA, MN, NH, NY, OR, RI, UT, VT, and WI. The OCC notes roughly three quarters of states permit state‑chartered banks flexibility, but these listed states have explicit requirements.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-08143, Streamlining Regulations Concerning Public Welfare Investments, Open Market Collateralized Loan Obligations, and Federal Savings Association Nondiscrimination Requirements
The Treasury’s Office of the Comptroller of the Currency wants to simplify some banking rules by removing outdated or confusing parts. This affects banks, especially federal savings associations and those dealing with certain loan investments. They’re asking for public feedback by May 27, 2026, aiming to cut red tape and make compliance easier without changing costs.
2025-21626, Regulatory Capital Rule: Modifications to the Enhanced Supplementary Leverage Ratio Standards for U.S. Global Systemically Important Bank Holding Companies and Their Subsidiary Depository Institutions; Total Loss-Absorbing Capacity and Long-Term Debt Requirements for U.S. Global Systemically Important Bank Holding Companies
Big U.S. banks that are super important to the economy are getting new rules to keep them safer and stronger. These changes tweak how much money they must keep on hand and how they handle long-term debt, helping prevent financial trouble. The new rules kick in soon and could affect how these banks manage billions in assets and debt.
2026-16532, Agency Information Collection Activities: Information Collection Renewal; Comment Request; Conversions From Mutual to Stock Form
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites comment on a continuing information collection, as required by the Paperwork Reduction Act of 1995 (PRA). In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is soliciting comment concerning the renewal of its information collection titled, "Conversions From Mutual to Stock Form."
2026-16454, Community Reinvestment Act Regulations
The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) are proposing to amend their Community Reinvestment Act rules by making certain substantive, technical, and process-oriented changes to refocus on the statutory objective of encouraging banks to meet the credit needs of their communities; to better ensure that community development grants reach the communities they are intended to benefit; to reduce unnecessary burden, particularly for community banks; and to provide greater clarity for how to obtain CRA consideration. The OCC and the FDIC are also proposing certain technical changes to their rules implementing the Community Reinvestment Act sunshine requirements of the Federal Deposit Insurance Act. In addition, the OCC is proposing similar technical changes to its Public Welfare Investments rule and its Rules, Policies, and Procedures for Corporate Activities.
2026-15867, OCC Rules Regarding the Availability of OCC Information
The Office of the Comptroller of the Currency (OCC) is proposing changes to its rules on information disclosure. The proposal would clarify the process for obtaining OCC approval to disclose non- public OCC information and allow for the disclosure of confidential supervisory information without OCC approval in certain circumstances, provided that applicable safeguards are observed. It also refines the OCC's process for requesting records under the Freedom of Information Act (FOIA), amends the rules to provide for expedited process of FOIA requests, and makes other structural and conforming changes.
2026-15088, Agency Information Collection Activities: Proposed Information Collection; Comment Request; Applications for Licensing or Registration To Issue Payment Stablecoins Under the GENIUS Act
The OCC, as part of its continuing effort to reduce paperwork and respondent burden, invites comment on a continuing information collection, as required by the Paperwork Reduction Act of 1995 (PRA). In accordance with the requirements of the PRA, the OCC may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The OCC is proposing a new information collection to comply with the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act or the Act) requirement for entities seeking to issue payment stablecoins in the United States. The OCC is seeking a new OMB control number for this information collection.
Previous / Next Documents
Previous: 2025-23987, Preemption Determination: State Interest-on-Escrow Laws
The Treasury’s Office of the Comptroller of the Currency (OCC) wants to make it clear that federal law lets banks decide if they pay interest or charge fees on real estate escrow accounts, not state laws. This change affects banks regulated by the OCC and aims to simplify rules, helping banks manage escrow accounts more easily. People can share their thoughts by January 29, 2026, before the rule is finalized.
Next: 2025-24022, Modification of Class E Airspace; Ketchikan International Airport, Ketchikan, AK
The FAA wants to change the airspace rules around Ketchikan International Airport in Alaska to make flying safer and smoother, especially for pilots using instruments. These changes affect pilots and air traffic controllers and won’t cost anyone extra. If you have thoughts, you’ve got until February 13, 2026, to speak up!