Jeffrey P. Naimon quoted in National Mortgage News article, “FDIC proposes new insurance calculations for servicing advances”
National Mortgage NewsJeffrey P. Naimon
Jeff Naimon was quoted in the National Mortgage News article, “FDIC proposes new insurance calculations for servicing advances,” regarding the agency’s plan to add principal and interest funds advanced by a servicer to borrower coverage calculations. Naimon offered that it will “be a source of friction” due to the potential complications with current recordkeeping and recategorization of advances in line with the proposal. He also noted that the FDIC has not simplified its deposit insurance rules since 2008, and the resulting disarray that followed more recently led to greater record-keeping requirements for bigger institutions. Escrow funds, which servicers collect from borrowers to pay consumers’ property taxes and insurance on consumers’ behalf, also get advanced, and have received coverage at the mortgagor level. However, advanced P&I payments have not.
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