Last Friday, the FDIC approved a final rule that simplifies deposit insurance coverage for deposits held in connection with revocable and irrevocable trusts by merging these two deposit insurance categories and applying a simpler calculation to determine coverage.
The final rule also amends the rule that governs coverage for mortgage servicing accounts to allow principal and interest funds advanced by a mortgage servicer to be included in the deposit insurance calculation.
The final rule will take effect on April 1, 2024.
Sincerely,
Sarah Smith, CRCM, CAFP