MBA Comments on FDIC's Simplification of the Coverage Rules for Mortgage Servicing Accounts

John A. Courson, Chief Operating Officer of the Mortgage Bankers Association (MBA) issued the following statement after the Federal Deposit Insurance Corporation (FDIC) announced an interim final rule clarifying that deposit accounts maintained by mortgage servicers in escrow for a borrower's principal and interest payments will be based on the borrower as the owner of the escrow account and not the investor.

'We are very pleased that the FDIC has made this clarification. In light of the current market instability, we are grateful for any action that calms the concerns of individuals, financial institutions and the market as a whole in a safe and sound manner. We look forward to working with the FDIC and other market participants to ensure a timely and efficient implementation of the new insurance requirements.'