Mortgage industry latest real estate sector to express alarm over GOP tax bill

Provision in Senate bill could drive some small lenders out of business, experts say

New York /
Nov.November 30, 2017 10:12 AM


The mortgage industry is the latest group to express concern over the proposed GOP tax plan

Add the mortgage industry to the list of groups concerned about the Republican tax plan.

Industry leaders are worried that a provision in the Senate bill changing the time when lenders pay taxes on income they get from managing mortgages could cause some smaller lenders to go out of business, according to Bloomberg.

Lenders currently pay taxes on this service as they receive the money, but under the Senate bill, they would have to pay these taxes upfront. The Mortgage Bankers Association said smaller companies unable to afford this could just abandon the practice entirely.

“It’s a fire drill,” MBA president David Stevens told Bloomberg. “We’re scrambling to get people on phone calls. It would cause a significant disruption in the industry.”

Senate leaders expect to vote on the bill Thursday or Friday, and it is unclear whether they plan to keep this provision in the bill or whether they targeted lenders on purpose.

The Republican tax proposals could have far-reaching effects on the real estate industry, including making it more expensive to own a home and making it more difficult to develop affordable housing, though it would likely be a boon for condominium developers and large real estate corporations.  [Bloomberg]Eddie Small


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Suburbanites with pitchforks as two hands ripping building plans
Suburban Nimbys oppose more housing. Do they have a point?
Suburban Nimbys oppose more housing. Do they have a point?
Gale Brewer (Getty, Gale Brewer)
City takes aim at landlords’ empty retail space
City takes aim at landlords’ empty retail space
From left: Silverstein Properties' Larry Silverstein and New York City Councilmember Julie Won along with a rendering of Innovation QNS (Getty Images, Julie Won for City Council, Innovation QNS Official Site)
Silverstein’s Astoria megaproject ups affordable housing commitment
Silverstein’s Astoria megaproject ups affordable housing commitment
MR Property Builders' Rich Rauff and 45th Street between Pacific and Prospect Streets in Copiague (Getty Images, Google Maps, MR Property Builders)
Honey, they shrunk the housing: Long Island project withers
Honey, they shrunk the housing: Long Island project withers
Village of Lawrence mayor Alex Edelman (Facebook, Getty)
Shovels down! Hempstead Town halts development in two villages
Shovels down! Hempstead Town halts development in two villages
A photo illustration of Daniel Brodsky and 75 West End Avenue (Getty Images, Google Maps)
Brodsky brings challenge to NYC Airbnb law
Brodsky brings challenge to NYC Airbnb law
arrow_forward_ios

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

Loading...