Are condo & HOA bank deposits fully insured by Uncle Sam? - Loop North News:
The answer is more complicated than you might think. Are the association's funds in an account in its own name? Or are they commingled in one big account in the name of the management company, that is way over the dollar limit on federal depository insurance? If so, “If the management company is complying with the FDIC’s rules for pass-through deposit insurance coverage, then each HOA the company is holding funds for in the commingled account would have up to $250,000 of deposit insurance coverage at that bank,” explained the FDIC memorandum.
But what if they are not complying with those rules for pass-through deposit insurance coverage?
2 comments:
My congress-critter ( Jared Polis, D-CO ) has assured me that protecting consumers of H.O.A.-burdened housing is not a proper role of the federal government. So why should the federal government be involved in insuring their money?
Bill Davis, who occasionally posts comments on this web site as "I.C. Delight", has been warning about the danger of this for years.
And not just about bank deposits, but other co-mingled insurance policies; i.e. -- property management companies having one insurance policy for multiple H.O.A. corporations that do not provide enough coverage for the multiple H.O.A. corporations, while the management companies pocket the extra payments as profit.
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