WASHINGTON—Concerns over the ability of consumers to calculate deposit insurance coverage under new rules proposed by NCUA have been expressed in a letter from NAFCU to the agency.
In the letter, Senior Regulatory Affairs Counsel James Akin expressed support for proposed amendments’ aim to simplify share insurance rules, but urged the agency to implement a phased approach and provide support for credit unions.
Akin noted NAFCU’s support for creating a "trust accounts" category for both revocable and irrevocable trusts, and thanked the agency for aligning its proposal with the FDIC’s regulations, creating parity for insurance systems.
However, Akin said “NAFCU believes that there may be instances where accountholders lack the necessary information to calculate share insurance coverage under the new rule.”
Feedback on MSA Amendments
Regarding the proposed amendments to regulations regarding mortgage servicing accounts (MSAs), Akin said the trade group supports consistent share insurance treatment of MSAs and said the amendment “simplifies the insurance coverage determination for MSAs, making it easier for credit unions to understand and apply the rules.
He urged the NCUA to provide additional clarity, “enabling credit unions to manage MSAs more efficiently and with greater confidence in their compliance efforts.”
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