Federal Preemption of State Banking Laws

Despite objections from Congress, the Office of the Comptroller of the Currency has issued a final rule identifying types of state real estate lending and other banking laws that are preempted for national banks (Wells Fargo, Bank of America, Citigroup, Bank One) and their operating subsidiaries.

Examples of state laws that would be preempted: mortgage broker and other professional licensing laws, credit score and insurance score disclosure laws, anti-predatory lending laws, check cashing and ATM fee laws, etc.

Timeline

In the News

NAR Comment Letters

NAR Testimonies

In-Depth Analysis / History

NAR Amicus Brief for the Watters Case (189K PDF file) - (September 1, 2006)

OCC Final Rule (111K PDF file) - (Federal Register, January 13, 2004)

State Laws Preempted for National Banks, Thrifts and Federal Credit Unions (146K PDF file) - January 7, 2004

Staff Analysis of Final Rule - January 7, 2004

OCC Q&A Regarding the Final Rule (200K PDF file) - January 7, 2004

Additional Resources

Field Guide to the OCC Preemption Rule

Financial Services/Fair Credit Reporting Act Issues page

Government Affairs homepage