ALEXANDRIA, Va.– NCUA is reminding the comment period on a proposed rule that would simplify the NCUA’s share insurance regulations by establishing a “trust accounts” category is now open.
The proposed rule was published in the Federal Register on Oct. 25, and has a 60-day comment period, ending December 26.
As CUToday.info reported earlier, the trust accounts category would provide Share Insurance Fund coverage of funds in both revocable and irrevocable trusts deposited at federally insured credit unions in the accounts of members or those otherwise eligible to maintain insured accounts.
What Proposal Seeks to Do
Additionally, the agency said the proposed rule would provide:
- Consistent share insurance treatment for all mortgage servicing account balances held to satisfy principal and interest obligations to a lender.
- More flexible recordkeeping requirements to explicitly allow the NCUA to look to records held in the normal course of business that are maintained by parties other than federally insured credit unions and their members.
- The proposed changes to the trust account and mortgage servicing account provisions in the NCUA’s Share Insurance Fund regulations would align with changes the FDIC previously adopted that take effect on April 1, 2024.
To comment: visit Regulations.gov.
As Winter Approaches, the Price for the Best Daily News Update in Credit Remains a Nice, Cozy Free!
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?