The ultimate indignity is that if someone had a $200,000 CD in a failed bank and a $200,000 mortgage with the same bank would end up with a $100,000 and the same $200,000 mortgage.
Maybe the right word is stupidity. The FDIC could have zerod out the loss against the mortgage but doesn't.Why is this an indignity? I don't get it.
I think mortgage payers should be more worried about what happens to the escrow account for property taxes & homeowner's insurance...Who do you pay your mortgage payments to if they go under?
What happens to a mortgage if say Washington Mutual goes under? I paid off my mortgage 2yrs ago (thank the lord) and it was through Wmu. Who do you pay your mortgage payments to if they go under? Cletis
The whole saga, pulled out of a foot-high stack of mail awaiting me on my return, was very interesting reading. Everything settled down without my intervention but since then I'm not a big fan of escrow accounts.
Maybe the right word is stupidity. The FDIC could have zerod out the loss against the mortgage but doesn't.
I don't get this either - why would the FDIC due such a thing.
The CD is a debt of the bank insured by the FDIC up to 100K.
The mortgage is a debt from the homeowner to the bank - FDIC no involvement in the transaction.
What am I missing?
txs
Is that true? Are CD's insured by FDIC? I thought that just covered checking and savings deposits?
Rick
Bank CDs are FDIC insured up to $100K by the FDIC. In IRAs the limit grows to $200K but I don't trust it because the CDs I buy are in a brokerage account. How would the FDIC know? It's too easy to stay under $100K.Is that true? Are CD's insured by FDIC? I thought that just covered checking and savings deposits?
Rick
Bank CDs are FDIC insured up to $100K by the FDIC. In IRAs the limit grows to $200K but I don't trust it because the CDs I buy are in a brokerage account. How would the FDIC know? It's too easy to stay under $100K.