Federal Rulemaking's Financial Fine Print The recent federal rules governing mortgage escrow accounts have sparked controversy, with ten state attorneys general suing to block them in a lawsuit filed in U. S.
District Court in Oregon. At issue is whether national banks and federal savings associations can circumvent state laws requiring them to pay interest on these accounts.
Behind the numbers – 80% of homeowners have an escrow account, with property taxes and insurance premiums paid annually or semiannually – lies a fundamental power dynamic between states and the federal government.