The Ohio Insurance Department has put out a press release stating that Ohio title escrow accounts are safe because they have received a determination from the FDIC they are covered under Federal Law. Ohio reports the FDIC has granted “account guarantee program coverage” for Ohio Trust Accounts, determining that Ohio escrow accounts have the same status as Ohio Lawyers’ Trust Accounts. This is good for title companies and consumers because title companies routinely accept client funds into their trust accounts during real estate transactions. The funds will be protected while in the bank the same way that the consumer’s checking, savings, and certificates of deposit are protected. Additionally, the funds will not be subject to the $250,000 maximum limitation.
The press release warns that the result they sought may not apply to escrow accounts maintained in other states. Does anyone know if other states have asked for a determination?