Personal Finance New federal rules could end mortgage escrow interest for some homeowners. States are suing to block them

A legal battle is brewing over new federal rules related to accounts that hold money to pay homeowners’ property taxes and insurance payments.

Ten state attorneys general filed a lawsuit on Tuesday seeking to invalidate a pair of Office of the Comptroller of the Currency rules that allow certain banking institutions under its supervision to sidestep state laws requiring them to pay interest on mortgage escrow balances. The federal lawsuit, filed in U.S. District Court in Oregon, names the OCC and Comptroller Jonathan Gould as defendants. LEARN MORE...