Practice of Carrying Mortgage Servicing Accounts on Depository Institution's General Ledger is Acceptable So Long as Certain Recordkeeping and Reporting Requirements are Met

FDIC-91-62

July 30, 1991

J. William Via, Jr., Counsel

This is in response to your letter of July 19 inquiring about the eligibility for deposit insurance of mortgage servicing custodial accounts (12 CFR § 330.6(d)), which you say your institution carries "on our general ledger rather than our demand deposit/savings system."

Our deposit insurance regulation (§ 330.1(d)) indicates that "deposit account records'' include "account ledgers''. Thus, your practice is acceptable, assuming that the requirements of § 330.4(b) are met, and that these accounts are duly reported as deposits and assessments are paid on them.