The FDIC reserve fund is nearing a threshold that will trigger a temporary reprieve on deposit insurance premiums for banks with less than $10 billion of assets.
The new regulation, codifying requirements already in practice, is meant to help the mortgage giants prepare for the adoption of a uniform security in June.
By applying to become an industrial loan company, the fintech would be able to use insured deposit accounts as a cheap source of funding without having to comply with the tough rules banks face.
JPMorgan Chase is considering setting up a private bank in China as new regulations give foreign firms a better chance to compete with local players in the world's second-biggest pool of wealthy people.
