# US states lawsuit against OCC mortgage escrow rules > Live situation record from CLSTR: https://clstr.news/situations/us-states-lawsuit-against-occ-mortgage-escrow-rules > Updated: 2026-08-17T03:42:51.000Z. Sources: 4. Developments: 2. Ten U.S. states, including Oregon, California, and New York, have filed a lawsuit in the U.S. District Court for the District of Oregon against the Office of the Comptroller of the Currency (OCC). The legal challenge contests new rules issued in May that grant national banks and federal savings associations the discretion to decide whether to pay interest on funds held in mortgage escrow accounts. Plaintiffs argue that these rules allow institutions to bypass state laws in 12 states and two territories that mandate interest payments on funds held for property taxes and insurance. State officials contend the OCC has exceeded its congressional authority and is attempting to circumvent the Dodd-Frank Act. Maryland has specifically joined the legal action, noting that under state law, lenders must pay interest tied to one-year U.S. Treasuries. Maryland officials argue the regulation creates unfair competition, as smaller state-chartered banks must continue to follow state interest requirements while national banks may opt out. ## Timeline ### 2026-08-17: Maryland sues OCC over new mortgage escrow interest rules New federal rules allow national banks to opt out of paying interest on mortgage escrow accounts, prompting a lawsuit from Maryland over authority and competitive fairness. 2 sources. https://clstr.news/cluster/maryland-sues-occ-over-new-mortgage-escrow-interest-rules ### 2026-08-14: Ten US states sue banking regulator over mortgage escrow rules Ten U.S. states have sued the Office of the Comptroller of the Currency, challenging new rules that allow national banks to avoid state laws requiring them to pay interest on mortgage escrow accounts. 2 sources. https://clstr.news/cluster/ten-us-states-sue-banking-regulator-over-mortgage-escrow-rules --- Cite as: US states lawsuit against OCC mortgage escrow rules. CLSTR, https://clstr.news/situations/us-states-lawsuit-against-occ-mortgage-escrow-rules