New FDIC Rule Changes for Trusts & Mortgage Servicing Accounts
The FDIC’s new rule changes regarding trusts and mortgage servicing accounts place a limit on the amount of deposit insurance and uses the same calculation for revocable and irrevocable trusts. Although the effective date is April 1, 2024, now is the time to determine which customers may not be fully insured — and prepare for impact.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
• Understand the difference between today’s FDIC insurance for trusts and tomorrow’s regulation
• Distinguish the difference between revocable and irrevocable trusts
• Explain how these changes may affect your customer’s insurance
• Understand the changes in mortgage servicing insurance
• Calculate and negotiate through the insurance rule changes
• Gather a list of customers who may be affected by the changes
• Clearly communicate to other staff the changes to irrevocable trusts (the rules are different, but the insurance may not be as good for these customers)
• Scrutinize the provided examples of how insurance will be calculated differently
The FDIC is amending the rules governing deposit insurance coverage. The amendments simplify the regulations by putting both revocable and irrevocable trust categories into one “trust accounts” category. It will use a common calculation for both and provide consistent deposit insurance treatment for all mortgage servicing account balances held to satisfy principal and interest obligations to a lender.
Coverage for trust account deposits will be determined through a simple calculation. Each grantor’s trust deposits will be insured up to the standard maximum deposit insurance amount (currently $250,000), multiplied by the number of trust beneficiaries, not to exceed five. This, in effect, will limit coverage for a grantor’s trust deposits at each insured depository institution (IDI) to a total of $1,250,000 — a maximum of $250,000 per beneficiary for up to five beneficiaries. What does this mean for your bank and customers? Some of your larger trust customers may not be adequately insured! Learn more during this pragmatic program.
WHO SHOULD ATTEND?
This webinar will benefit new accounts staff, deposit compliance personnel, deposit operations staff, branch staff, trainers, personal bankers, private bankers, and all deposit staff.
• FDIC regulation handbook
• PDF of slides and speaker’s contact info for follow-up questions
• Attendance certificate provided to self-report CE credits
• Employee training log
• Interactive quiz
NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your agency is prohibited. Print materials may be copied for eligible participants only.
MEET THE PRESENTER — Deborah Crawford, Gettechnical Inc.
Deborah Crawford is the President of Gettechnical Inc., a Virginia/Florida based firm, specializing in the education of financial institutions across the nation. Her 30+ years of experience began at Hibernia National Bank in New Orleans. She graduated from Louisiana State University with both her bachelor’s and master’s degrees.
Crawford specializes in the education of financial institution employees and officers in the areas of deposit account laws, new account documentation, insurance, complex compliance regulations, and IRAs.
- $245 – Live Webinar Access
- $245 – OnDemand Access + Digital Download
- $320 – Both Live & On-Demand Access + Digital Download