MBA raises concern over limit on mortgage interest deduction in federal budgetMortgagePress.comMBA, Department of Housing and Urban Development, HUD, Barack Obama, FY 2010
The Mortgage Bankers Association has raised concerns about the
limitation on itemized deductions in the President's budget and
expressed support for the budget increase in the Department of
Housing and Urban Development (HUD).
The limitation on itemized deductions for those taxpayers
earning over $250,000 (joint) and $200,000 (single) will reduce the
itemized deductions related to home mortgage interest, real estate
taxes on primary residence and mortgage insurance. Under the plan,
taxpayers over the income limits will receive tax benefits from
their itemized deductions at a maximum tax rate of 28 percent
(instead of the higher incremental tax rate commensurate with their
income tax bracket).
"The MBA opposes any additional cap or reduction in the mortgage
interest, insurance and homeowner real estate tax deduction," said
MBA's Chairman, David G. Kittle, CMB. "Given the current state of
the market, this proposal could have an adverse effect on a market
that is already in trouble; and this is not the time to reduce
incentives for buying or refinancing a home."
The Administration's FY 2010 budget funds the Financial
Stability Plan and Troubled Assets Relief Program (TARP), two
important economic stability initiatives supported by the MBA.
Under the proposal, HUD would receive an overall budget increase of
over 18 percent to $47.5 billion. An additional $1 billion would be
utilized to launch an Affordable Housing Trust Fund to develop
affordable housing for very-low income households.
"MBA strongly supports the increased budget request for HUD,
which includes foreclosure prevention efforts," said Kittle.
The Association looks forward to reviewing additional details of
the administration's proposed budget and will work closely with
Congress as it considers the FY 2010 budget resolution and
appropriations bills.
For more information, visit www.mortgagebankers.org.
