A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Office of the Comptroller of the Currency relating to "Preemption Determination: State Interest-on-Escrow Laws".

Key Points

• This resolution aims to cancel a federal rule created by the Office of the Comptroller of the Currency. The rule currently says that national banks do not have to follow state laws that require them to pay interest to homeowners on their mortgage escrow accounts.
• If this resolution passes, states would be allowed to enforce their own laws requiring banks to pay interest on the money held in escrow for property taxes and insurance. This would primarily affect homeowners with mortgages at large national banks in states that have these consumer protection laws.
• The sponsor believes that federal regulators should not be able to override state consumer protection laws. By blocking the federal rule, supporters hope to ensure that homeowners receive the interest payments they are entitled to under their local state laws.
• This is a disapproval resolution, which is a tool Congress uses to strike down rules made by government agencies. If it passes both the House and Senate and is signed, the agency is also banned from making a similar rule in the future.

Impact Analysis

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