Law Commons^™

Cracking The Door To State Recovery From Federal Thrifts, Daniel M. Attaway

Seventh Circuit Review

In the midst of the Great Depression, Congress created the Office of Thrift Supervision (“OTS”) to oversee and regulate the federally chartered thrift industry. Congress granted the OTS the power to create regulations to examine thrifts, ensure they were sound, and to preempt state laws affecting their operations, but not the power to provide remedies to a thrift’s customers. Over the next 70 years, the courts consistently interpreted Congress’ grant of regulatory authority as plenary—preempting almost any state law that affected, even minimally, the operation of a federal thrift. The Seventh Circuit, in In re Ocwen Loan Servicing, LLC Mortgage …