By Krista Franks | 01/12/2012
A group convened on the steps of the South Carolina State House Thursday to express their support of homeownership and opposition to policy changes that might threaten the American Dream. The outlook expressed at the rally mirrors widespread sentiment uncovered in a recent industry survey. About three-fourths of American voters said it is "appropriate and reasonable" for the federal government to promote homeownership through tax incentives.
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By Krista Franks | 08/09/2011
After much hype about the possibility of an elimination of the mortgage interest deduction (MID) as part of the debt ceiling agreement, the August 2nd accord included no such provision. However, the new law does call for major deficit reductions -- $2.4 trillion total -- to go into place over the next several years. A $917 billion reduction over the next 10 years is automatic. An additional $1.5 trillion reduction must be decided by November 23rd. The bipartisan committee dedicated to determining those cuts could find the MID an easy target.
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By Carrie Bay | 07/29/2011
What many consider to be a staple of American homeownership is expected to be on the chopping block as lawmakers look to trim the nation's deficit. The prized mortgage interest tax deduction has been part of the federal tax code since 1913. Currently, it costs the U.S. Treasury an estimated $94 billion a year. Congress has tossed around several proposals for amending this part of the federal tax code, including lowering the debt limit to $500,000 on first mortgages. Such a move is estimated to return between $5 billion and $15 billion.
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By Carrie Bay | 04/07/2011
The International Monetary Fund (IMF) has some pretty direct words for the American government and its handling of the U.S. housing crisis. In an annual report that will be released next week, IMF says the origins of the global financial crisis can be found in the U.S. housing finance system. The agency says government participation in the U.S. housing market has been "pervasive" but has not yielded the expected benefits to prospective or existing homeowners.
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By Joy Leopold | 12/03/2010
The 18 members of the National Commission on Fiscal Responsibility and Reform voted Friday on a proposal to reduce the national deficit by $4 trillion by 2020.
Their plan recommended reducing and in some cases eliminating the mortgage interest tax deduction that homeowners have been accustomed to for more than 80 years. Though the commission voted in support of the proposal with an 11-7 vote, those margins did not meet the 14-4 stipulation required to automatically send the recommendations to Congress.
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By Joy Leopold | 12/01/2010
In early November, co-chairs of the National Commission on Fiscal Responsibility and Reform released a draft of a proposal that suggested significantly reducing mortgage interest tax deductions. The final proposal was released Wednesday amid much controversy.
The details of the draft have been circulating for weeks, and while the proposal has received some support, there has been strong opposition to such drastic measures in such uncertain and unstable times for the housing market.
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By Carrie Bay | 11/11/2010
Members of the commission created by President Obama to shrink the federal deficit published a proposal this week that would significantly scale back the mortgage interest tax deduction. One recommendation would reduce the deduction amount by 20 percent. The second calls for the exclusion of second residences, home equity loans, and mortgages over $500,000.
The proposal has drawn criticism from industry groups who say now is not the time to wrench incentives from a housing industry struggling to get back on its feet.
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