Attorney General William Tong and a coalition of 10 attorneys general filed a lawsuit challenging a new OCC rule that preempts state laws requiring national banks to pay interest on homeowners' mortgage escrow accounts. The lawsuit argues the OCC ignored federal court decisions and bypassed safeguards, and seeks to block the rule.
The coalition seeks to block the OCC rule and preserve state authority to require interest payments on mortgage escrow accounts.
In-house counsel for financial institutions should review mortgage servicing agreements and escrow account provisions to assess reliance on federal preemption of state interest-on-escrow requirements. They should also review vendor contracts with national banks for clauses related to regulatory compliance and changes in law, and consider whether state escrow interest laws apply to their operations. If the lawsuit succeeds, banks may need to implement systems to track and pay interest on escrow accounts, so contracts with loan servicers should allocate responsibility for such payments and compliance.
Entity
Office of the Comptroller of the Currency
Industry
Financial ServicesOfficial Press Release
https://portal.ct.gov/ag/press-releases/2026-press-releases/attorney-general-william-tong-sues-to-block-lawless-handout-to-big-banks
states escrow interest complaint.pdf?rev=625aec749a9a4eb3b51
https://portal.ct.gov/-/media/ag/press_releases/2026/states-escrow-interest-complaint.pdf?rev=625aec749a9a4eb3b519a52084939f83&hash=A843E9E4F04B3A3690D8F53434E570C9
Connecticut Attorney General Enforcement Page
https://portal.ct.gov/AG/Privacy/Privacy-Resources
"filed a lawsuit today opposing a new rule issued by federal regulator of national banks, the Office of the Comptroller of the Currency (OCC), that would strip states of their authority to require national banks to pay interest on homeowners’ mortgage escrow accounts."
"Joining Attorney General Tong in filing this lawsuit are the attorneys general of California, Maine, Maryland, Massachusetts, Minnesota, New York, Oregon, Rhode Island, and Vermont."
"Attorney General William Tong and a coalition of 10 attorneys general filed a lawsuit today opposing a new rule"
Nine state attorneys general, led by New York AG Letitia James, sued the U.S. Office of the Comptroller of the Currency (OCC) to stop two rules that preempt state laws requiring banks to pay interest on escrow accounts. The coalition argues the rules exceed OCC's authority under Dodd-Frank and the Administrative Procedure Act. The suit seeks a court order declaring the rules illegal and preventing their implementation.
Oregon Attorney General Dan Rayfield co-led a coalition of 10 states in a federal lawsuit against the Office of the Comptroller of the Currency (OCC) to block a rule that invalidates state laws requiring mortgage lenders to pay interest on escrow accounts. The lawsuit argues the OCC's rule oversteps federal authority, gives national banks a competitive advantage over state-chartered banks, and takes money away from homeowners.
Connecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.
Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.
$400.0M
Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.
Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.