Industry experts battle proposed mortgage interest deduction changes

TRD New York /
Dec.December 02, 2010 01:36 PM

Industry leaders are riled over a federal proposal to overhaul the mortgage interest tax deduction, according to CNNMoney. The deduction, which allows homeowners to deduct interest on their mortgages of as much as $1 million, would be curtailed under the proposal, brought forward by the presidential deficit commission (see CNBC video on the proposal above). Among the changes would be a $500,000 mortgage cap and a 12 percent non-refundable tax credit made available to all. The panel, which has been tasked with reducing the national deficit by $4 trillion over the next decade, said that the tax deduction could be siphoning too much cash out of federal coffers. But Michael Berman, chairman of the Mortgage Bankers Association, said that the deduction, which costs an estimated $131 billion a year, is necessary to keep the housing market’s recovery rolling. “It would immediately stop in its tracks any stabilization we are seeing in the housing market and would effectively increase the cost of homeownership for millions upon millions of people,” Berman said of the panel’s curtailed deduction plan. [CNNMoney]


Related Articles

arrow_forward_ios
A homeowner in New York was about three times as likely to have a mortgage in forbearance, an analysis by Kroll found. Being self-employed doubles the likelihood. (iStock)

TRD Insights: NY, NJ homeowners more likely to be in mortgage forbearance

TRD Insights: NY, NJ homeowners more likely to be in mortgage forbearance
(Credit: iStock)

Six weeks, six jumps in mortgage applications to buy homes

Six weeks, six jumps in mortgage applications to buy homes
Despite record-low interest rates, tightened mortgage lending standards which may hamper the economic recovery. (iStock)

Tightening mortgage market threatens economic recovery

Tightening mortgage market threatens economic recovery
A rendering of 1998 Second Avenue in Harlem and Peter Fine (Credit: GF55 Architects)

Peter Fine inks $70M construction loan for Harlem resi project

Peter Fine inks $70M construction loan for Harlem resi project
(Credit: iStock)

Loan applications to buy homes rise for fifth week

Loan applications to buy homes rise for fifth week
(Credit: iStock)

TRD INSIGHTS: MBA finds 8% of home loans in forbearance

TRD INSIGHTS: MBA finds 8% of home loans in forbearance
(Credit: iStock)

Applications to buy homes rise for fourth week with New York leading the way

Applications to buy homes rise for fourth week with New York leading the way
(Credit: iStock)

TRD Insights: MBA finds 8% of home loans in forbearance

TRD Insights: MBA finds 8% of home loans in forbearance
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...