Home / Agencies / Treasury / 2025-23987
Proposed Rule

Preemption Determination: State Interest-on-Escrow Laws

Agency
Treasury
Document Number
2025-23987
Published
December 30, 2025
Effective Date
-

Abstract

The OCC is proposing to issue a preemption determination concluding that federal law preempts state laws that eliminate OCC- regulated banks' flexibility to decide whether and to what extent to (1) pay interest or other compensation on funds placed in real estate escrow accounts; or (2) assess fees in connection with such accounts. This preemption determination would provide much needed clarity to banks and other stakeholders.

Federal Register Source

This document is published by the Office of the Federal Register, National Archives and Records Administration. Access the full regulatory text, preamble, and docket comments below.

View Full Text on FederalRegister.gov →

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Frequently Asked Questions

What is the 2025-23987 Federal Register document?
Document 2025-23987 is a Proposed Rule published by the Department of the Treasury in the Federal Register on December 30, 2025. The OCC is proposing to issue a preemption determination concluding that federal law preempts state laws that eliminate OCC- regulated banks' flexibility to decide whether and to what extent to (1) pay interest or other compensation on funds placed in real estate escrow accounts; or (2) assess fees in connection with such accounts. This preemption determination would provide much needed clarity to banks and other stakeholders. View the original at https://www.federalregister.gov/documents/2025/12/30/2025-23987/preemption-determination-state-interest-on-escrow-laws.
Is document 2025-23987 an economically significant rule?
No. Document 2025-23987 is not classified as economically significant under Executive Order 12866. Economically significant rules require OIRA review and are estimated to have impacts of $100 million or more per year.

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