Legal Hotline Spotlight

*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.

Q: I saw that credit unions are not insured by FDIC. Does that mean that I can’t have my real estate escrow accounts in a credit union?

A: Not at all. While credit unions are not insured by the Federal Deposit Insurance Corporation (or FDIC), they are insured by a different organization, the National Credit Union Administration (or NCUA). Virginia regulations do not require that escrow accounts be opened in FDIC institutions, just that they be opened in a “federally insured depository.” Assuming the credit union is insured by the NCUA, it is perfectly fine to open your escrow account there.

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