American Land Title Association
Print Friendly
Home  >  News Room
News Room

SoftPro is the nation's leading provider of Real Estate Closing and Title Insurance software

North American Title Insurance Company is a seasoned title insurance underwriter that has been helping customers achieve the American dream of homeownership for more than 50 years. In the past several years, we have become known as the “underwriter next door,� because our associates are always easy to reach and our processes are, at all times, quick and straightforward. Our agency application process is fast and transparent for qualified agents. NATIC offers a one-hour underwriting response guarantee that is unparallelled in our industry. In addition, we value our agents based on their title industry knowledge and experience, not just on profits alone.

Interest on Business Checking

March 1, 2003

Ann vom Eigen, Legislative & Regulatory Counsel

ALTA members have voiced concern regarding HR 859, the Business Checking Freedom Act of 2003, and are urging inclusion of a provision in any bill to ensure a continuation of the current legal treatment of real estate transaction escrow accounts under any new law.

These bills would repeal the current Regulation Q (Federal Reserve) prohibition on banks paying interest, and would effectively eliminate certain well-established financial benefits and checking services that large depositors now receive from banks in lieu of interest.

The House bill contains an amendment, Section 3, Rule of Construction that ensures the current regulatory treatment under Regulation Q would continue for real estate transaction escrow accounts under the new law.

These financial benefits are now provided in accordance with current guidance under Regulation Q. For example, Regulation Q provides that offering the following services without charge is not the payment of interest:

  • Armored car services;
  • Short-term overdraft privileges;
  • Full endorsement stamps;
  • Printed checks;
  • Safe deposit boxes and night depository facilities;
  • Preparation of reports required of a bank by a municipality;
  • Loans at preferential interest rates; and
  • Maintenance of a permanent record of all checks and deposits.

ALTA members hope that the current provision of services by banks, in accordance with Regulation Q and identical legal treatment, would be continued even if the legislation allowing interest to be paid on business checking accounts passes. We believe that a clear Congressional statement to that effect would be invaluable.

The Federal Reserve Congressional staff has indicated "they don't have a dog in this fight."

We hope Congress includes language dealing with the treatment of these accounts as action proceeds on this legislation.

Print Friendly

How To Find Us:
American Land Title Association
1800 M Street, NW, Suite 300S
Washington, D.C. 20036-5828
P. 202.296.3671 F. 202.223.5843
Copyright © 2004-2016 American Land Title Association. All rights reserved.
SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment