American Banker (10/14/08) P. 3; Flitter, Emily
In response to concerns that it would reduce liquidity at banks, Fannie Mae has scrapped a rule change that would have forced troubled institutions to immediately turn in principal and interest payments to it instead of holding the funds in mortgage servicing accounts. However, in a move that has received support from the mortgage industry, the Federal Deposit Insurance Corp. will insure tax and insurance funds from mortgages on a pass-through basis, shifting the money to accounts in borrowers' names and insuring them up to $250,000. The coverage limit will return to $100,000 on Jan. 1, 2010.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment