FDIC Deposit Insurance Simplification Rule

The FDIC recently amended its rules regarding deposit insurance, establishing a category for “trust accounts” which simplifies coverage of deposits held in connection with revocable and irrevocable trusts. The FDIC at the same time also amended the rules applicable to mortgage servicing accounts to allow principal and interest funds advanced by a mortgage servicer to be included in the deposit insurance calculation.

The amendments go into effect on April 1, 2024.