Regulatory Alerts2022-01-28 | 2022-01607Simplification of Deposit Insurance Rules
The Federal Deposit Insurance Corporation issued a final rule amending 12 CFR Part 330 to merge revocable and irrevocable trust deposits into a unified "trust accounts" category. This amendment establishes a straightforward calculation that insures each grantor’s trust deposits up to $250,000 per beneficiary for a maximum of five beneficiaries, while standardizing coverage for mortgage servicing account balances. The streamlined framework reduces administrative complexity for financial institutions, accelerates post-failure insurance determinations, and facilitates prompt payouts from the Deposit Insurance Fund.
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