FDIC Deposit Insurance - An Interesting Twist

FDIC Deposit Insurance - An Interesting Twist

We have received questions from Agents about 'the changes in the FDIC insurance limits' discussed in various magazines. 

The  gist of it is that, as of January 1, 2013, one of your customers can get financially damaged if the following chain of events takes place:

1. They have money in escrow in your escrow account;

2. They also have other funds at the same financial institution that you are not holding;

3. The money they are holding in your escrow account PLUS the other funds they have on deposit in the institution total more than $250,000; and

4. There is a bank failure.

What happened on January 1, 2013, is that a temporary rule expired. The temporary rule had eliminated the $250,000 limit for situations outlined in 1-4 above.  

What can you do about it?

Download and use this FDIC Waiver  http://db.tt/fBxEVC8T

Read this memo from the FDIC http://db.tt/hiK8vby1

Have your customers read this FDIC information  https://www.fdic.gov/edie/fdic_info.html


FNF Ohio Agency does not know the ins and outs of the FDIC and the rules referenced above. We are attempting to inform you about a potential problem.