High Court Blocks State's Regulation Of Wachovia Unit

Law360, New York (April 17, 2007, 12:00 AM EDT) -- In a move that bodes well for national mortgage lenders, the U.S. Supreme Court has ruled that Wachovia Corp.’s mortgage unit is not subject to regulation by state banking offices.

In a 5-3 ruling, the High Court found Tuesday that the Office of the Comptroller of the Currency, a federal banking agency, should oversee the business of mortgage subsidiaries of national financial institutions, and not state regulators.

“We hold that Wachovia’s mortgage business, whether conducted by the bank itself or through the bank’s operating subsidiary, is...
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