The FDIC today adopted an interim final rule governing the method for which deposit insurance coverage is determined with respect to mortgage servicing accounts. Mortgage servicing accounts – accounts maintained by servicers to collect monthly payments of principal and interest from mortgagors – are an integral aspect of any mortgage-backed securities transaction. Under current FDIC rules, insurance coverage is determined by the ownership percentage of each investor (of the related mortgage-backed securities) in such mortgage servicing account as a percentage of the aggregate amount in such account. Under the FDIC's new interim rule (which is subject to a 60-day comment period), insurance coverage will be determined based on each borrower’s contribution to the account and will be calculated independently of any other deposits held by the borrower at that bank. As justification for the change, the FDIC noted that "it has become much more difficult and time-consuming for a servicer to identify and determine the share of any investor in a securitization and in the principal and interest funds on deposit at an insured depository institution." While arguably true (particularly in the context of complex mortgage-backed transactions such as CDOs), the real benefit of the FDIC’s actions may lie in the protections it affords mortgagors, who would ordinarily remain liable to security holders for their principal and interest payments regardless of a servicing bank failure, and the protections it affords depository institutions, which might otherwise experience withdrawals of servicer deposits.