Not to put too fine a point on it, but the West Bank was part of the U.N. partition of the area (originally part of the Ottoman Empire) in 1947. Jordan, a nation created no less artificially than Israel, and by the same Western mandates, took over the West Bank area, and annexed it in 1950. This annexation was recognized only by Britain and, I think, Pakistan.

From then until 1967, Jordan might have created a Palestinian homeland at the stroke of a pen, but like most Arab nations, real concern about the Palestinian people was never their motivation.

After the 1967 war of extermination against them, Israel took the West Bank again, along with the Sinai peninsula. In 1982, in a treaty with Egypt, Israel gave Sinai back. In 1988, Jordan renounced its claim to the West Bank. Recently, Gaza was turned over to the Palestinians and settlements withdrawn. The Palestinians settled down to killing each other, and continuing the war against Israel.

As you can see, "occupation" is kind of a fuzzy concept in the case of the West Bank, never mind the legality of building settlements.