FEDERAL GOVERNMENT RELATIONS
OCC issues final rules on escrow
The Office of the Comptroller of the Currency issued two final rules on banks’ real estate lending powers related to the payment of interest on funds held in escrow accounts.
The OCC:
- Codified longstanding powers of national banks and federal savings associations to establish or maintain real estate lending escrow accounts and to exercise flexibility in making business judgments as to the terms and conditions of such accounts, including whether and to what extent to offer any compensation paid to customers or to assess any related fees.
- Issued a preemption determination concluding that federal law preempts state laws that restrict banks’ flexibility to decide whether and to what extent to pay interest or other compensation on funds placed in real estate escrow accounts or assess fees in connection with such accounts.
The OCC in December said that the National Bank Act preempts New York’s Gen. Oblig. Law section 5-601, the state’s interest-on-escrow law.
FDIC updates signage rules Q&A to reflect recent changes
The Federal Deposit Insurance Corp. has updated the Q&As for its signage and advertising requirements to reflect recent changes to the regulation.
Fed releases formal proposal to create ‘skinny’ master accounts
After previously seeking public input on the idea, the Federal Reserve issued a formal proposal for establishing payment accounts and will seek further comment.
House passes housing package, banking bills
The House voted to pass a bipartisan bill to bolster housing supply after the White House signaled its support for the measure. Lawmakers also passed three bills seeking to boost de novo bank formation and amend the brokered deposit framework.
Largest Bitcoin kiosk operator files for bankruptcy
The largest operator of Bitcoin kiosks in the U.S. is shutting down amid increased regulatory scrutiny of the role of “crypto ATMs” in facilitating scams, according to news reports.
New executive orders target banks and citizenship, nonbank access to Fed services
President Trump signed an executive order directing regulators to provide guidance to financial institutions on identifying suspicious activity allegedly tied to individuals in the country illegally, and to potentially strengthen customer due diligence requirements. He also signed a separate order asking the Federal Reserve to explore expanding its payment accounts and payment services to nonbank financial institutions.