WASHINGTON (CN) – Anyone want to loan money on a house? Deposit insurance has increased for mortgage investors, according to an FDIC regulation.
Mortgage servicing accounts will be insured up to $250,000 per borrower, as opposed to the previous $100,000 per lender/investor, until the end of next year. Principal and interest that the borrower pays into the account will be insured up to a cumulative amount of $250,000. Taxes and insurance premiums paid into the account will be added together and insured for the ownership interest of each mortgagor.
The Federal Deposit Insurance Corporation claims the change is to make the insurance coverage rules easy to understand and apply and to avoid uncertainty about what is insured.
The Emergency Economic Stabilization Act of 2008 temporarily increased the standard maximum deposit insurance amount from $100,000 to $250,000, effective Oct. 3, and ending on Dec. 31, 2009. After that date, the insurance coverage limit will, by law, return to $100,000.
Click on the document on the front page for details and other new regulations.