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Thursday, Mar 28, 2024

MBA Opposes Change in Mortgage Deductions

As might be expected, the Mortgage Bankers Association today released a statement opposing several of the proposals issued by the President’s Advisory Panel on Federal Tax Reform. The recommendations include a significant decrease in the allowable deduction for mortgage increase. “And, let’s face it no matter how you dress this up, it’s a tax increase for a lot of working Americans,” said Jonathan L. Kemper, president and CEO of the MBA in a statement. Among the proposals by a panel convened by Pres. George W. Bush, is a plan to replace the current mortgage interest deduction with a tax credit for 15 percent of the interest paid on a mortgage loan for many homeowners, a change that the MBA and others say would be especially detrimental to homeowners in high-housing cost areas including California. The MBA also said the plan would cause housing prices to plummet.

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