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
Turnbridge Equities founder Andrew Joblon, KKR co-founder Henry Kravis and the distribution center (Getty, Turnbridge)
Turnbridge, Dune land $381M loan for Hunts Point site
Turnbridge, Dune land $381M loan for Hunts Point site
City won’t landmark Grand Prospect Hall, clearing way for demolition
City won’t landmark Grand Prospect Hall, clearing way for demolition
City won’t landmark Grand Prospect Hall, clearing way for demolition
A crackdown on mob activity has brought to light the alleged shakedown of a construction union based in Queens. (iStock)
Colombo mob boss arrested over alleged construction union shakedown
Colombo mob boss arrested over alleged construction union shakedown
Gov. Gavin Newsom (Getty)
California Gov. Newsom wins recall election; homeless, housing crises loom
California Gov. Newsom wins recall election; homeless, housing crises loom
The Real Estate Roundtable's  John Fish and Jeffrey DeBoer (Real Estate Roundtable, iStock)
Real Estate Roundtable: Break deadlock on $1T infrastructure bill
Real Estate Roundtable: Break deadlock on $1T infrastructure bill
Vanbarton Group’s Gary M. Tischler and Richard Coles with Marble Collegiate Church at 1 West 29th Street (Getty)
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
arrow_forward_ios

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

Loading...