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Real Estate Lending Escrow Accounts
Plain English Summary
The Office of the Comptroller of the Currency (OCC) has finalized a rule that allows national banks and federal savings associations to create and manage real estate lending escrow accounts. This means banks can now have more freedom in deciding the terms of these accounts, including whether they will charge fees or offer any interest on the funds held in escrow. Insurance agents should be aware of these changes as they may affect how real estate transactions are financed and managed.
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The OCC is issuing a final rule to codify longstanding and recognized powers of national banks and Federal savings associations (collectively, banks) 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 or to assess any fees related thereto.