Regulatory Alerts2017-06-16 | I-17-02Washington State Department of Financial Institutions Guidance on Interest-on-Real-Estate Trust Accounts
The Washington State Department of Financial Institutions authorizes state-chartered credit unions to administer Interest-on-Real-Estate Trust Accounts (IRETAs) as a permissible incidental power under state law. Credit unions must comply with federal NCUA rules regarding pass-through share insurance, recordkeeping, and relationship disclosures while adhering to state mandates that require net interest to be remitted to the Housing Trust Fund and Real Estate Education Program. The guidance also clarifies distinct procedures for property management funds and establishes that financial institutions are generally immune from liability regarding the application of payments from these trust accounts.
Share