Senate Approves Mortgage Deduction and Debt Relief – NMP Skip to main content

Senate Approves Mortgage Deduction and Debt Relief

Phil Hall
Dec 17, 2014

The U.S. Senate has passed S. 2260, a bill that covers a deduction for mortgage interest premiums and mortgage debt relief.

As part of the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act, homeowners will be able to deduct the cost of mortgage insurance. According to the bill, “The deduction is phased-out ratably by 10 percent for each $1,000 by which the taxpayer’s AGI exceeds $100,000. Thus, the deduction is unavailable for a taxpayer with an AGI in excess of $110,000. The bill extends this provision for two additional years, through 2015. A two year extension of this provision is estimated to cost $1.8 billion over 10 years.”

The bill also covers mortgage debt relief.

“Under current law, taxpayers who have mortgage debt canceled or forgiven after 2013 may be required to pay taxes on that amount as taxable income,” S. 2260 stated. “Under this provision, up to $2 million of forgiven debt is eligible to be excluded from income ($1 million if married filing separately) through tax year 2015.”

The bill passed 76 to 16; the House of Representatives passed the bill by 387 to 46 two weeks ago, and President Obama is expected to sign the EXPIRE Act into law.

Published
Dec 17, 2014
CFPB Alters Threshold For Exempting Loans From Special Appraisal Requirements

The 2022 threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans will increase from $27,200 to $28,500. 

Regulation and Compliance
Dec 02, 2021
Regulatory Review, Reformatted

The progress made to date with NMLS modernization

Regulation and Compliance
Dec 01, 2021
November Surprise: Fed May Accelerate Tapering

Chairman Powell tells Congress of concerns about inflation, COVID-19 variant’s effect on recovery.

Regulation and Compliance
Dec 01, 2021
FHFA's 2022 Conforming Loan Limit Maxes Out At Nearly $1M

Baseline limit for Fannie, Freddie increases to $647,200, but for 'high-cost areas' loan ceiling set at $970,800 for single-family homes.

Regulation and Compliance
Dec 01, 2021
Regulators Are Back In The Saddle

There’s not only a new sherriff in town, it’s a whole gang of them.

Regulation and Compliance
Nov 29, 2021
CFPB Seeks Insight On Creating A Fairer Mortgage Market

The Consumer Financial Protection Bureau has been actively looking to create a fairer mortgage market, free of discriminatory engagements. To do so, it issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act.

Regulation and Compliance
Nov 17, 2021