FDIC Federal Register Citations

From: Doug Boland [mailto:dboland@wcrsi.com]
Sent: Monday, November 24, 2008 2:08 PM
To: Comments
Cc: Steve Kraemer; Dale Thayer
Subject: Deposit Insurance Regulations Temp Increase in Standard Coverage Amt - RIN-3064-AD36

Dear Sir or Madame:

Open period comments on FIL-111-2008

As a servicer of mortgage loans for various investors, we have a trust account (required by the CA department of Real Estate) into which are deposited all borrower payments (which may or may not include impound amounts for taxes and insurance). In reviewing the FDIC website and talking with an FDIC Trust representative (specifically in regards to FIL-111-2008), it appears that deposits held in trust for insurance and taxes are insured on an individual borrower basis up to $250,000 each, but is silent on amounts held for investors. What is the amount of insurance for the funds held in trust for the investors in the loans? Are they also insured on an individual basis or are they aggregated? Because we hold borrower payments for a period of time to make certain the checks clear their bank, we do not disburse immediately to investors, and thus can, and frequently do, build up a trust account bank balance in excess of the $250,000 limit, excluding the impound amounts that are insured on an individual basis. The amounts held in trust for various individual investors are no different that impound payments held in trust for borrowers. We believe the FDIC ruling needs to clarify this issue and make insurance on payments held in trust for investors insured on an individual investor basis.

Douglas Boland
West Coast Servicing, Inc.
714-596-6333 x 38
dboland@wcrsi.com