NCUA issues regulatory alert guidance on new IOLTA coverage

first_img 4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Interest on lawyer trust accounts (IOLTAs), real estate escrow accounts and prepaid funeral accounts are now eligible to receive enhanced federal insurance coverage from the National Credit Union Administration (NCUA).In a regulatory alert (16-RA-02) issued this week, the NCUA provided guidance on enhanced share insurance coverage.A bill allowing share insurance coverage for IOLTAs, an escrow account in a federally insured credit union on behalf of a lawyer’s clients, and other similar escrow accounts was signed into law in December 2014. The NCUA was required to pass a rule amending its regulations to match with the law.The NCUA board finalized the rule at its December 2015 board meeting, and it became effective Jan. 27.The NCUA decided that the similar escrow accounts language applies to real estate escrow accounts and prepaid funeral accounts as well. continue reading »last_img

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