Skip to main content

MBA’s Stevens Expresses Concern on Cutting Section 1031 from Tax Code

Phil Hall
Oct 13, 2017
The new push by the Trump Administration to bring the government-sponsored enterprises (GSEs) out of their 11-year federal conservatorship could result in some negative impacts on the wider mortgage market, according to an opinion piece by David H. Steven

The Mortgage Bankers Association (MBA) has expressed concern to the Trump Administration and congressional leaders that potential changes in the tax code could create more problems than solutions.
In a letter to Executive and Legislative Branch leaders, MBA President and CEO David H. Stevens acknowledged that the new enthusiasm for tax reform offered a “once-in-a-generation” opportunity, and he expressed satisfaction that the recently-released “Framework for Fixing our Broken Tax Code” preserved the mortgage interest deduction and the Low-Income Housing Tax Credit. But Stevens added that many mortgage professionals were concerned over the potential limiting or eliminating of tax code provisions including the continued deductibility of business interest and the preservation of Section 1031 like-kind exchanges for investment real estate.
“MBA is also concerned that an elimination or limiting of business interest deductibility would have far-reaching and damaging impact on many industries, including real estate finance, as changes of this sort will inevitably increase the cost of financing, make debt more expensive (for all businesses), and, in turn, limit real estate activity,” he wrote. “We strongly advocate that the provision of current law that allows businesses to deduct interest payments be preserved in its entirety.”
Stevens added the current utilization of Section 1031 provides “benefits that help to promote ongoing investment patterns within local real estate markets, which, in turn, is a boon to continued economic growth.”
Stevens’ letter was sent to House Speaker Paul Ryan, Senate Majority Leader Mitch McConnell, House Ways and Means Committee Chairman Kevin Brady, Senate Finance Committee Chairman Orrin Hatch, Treasury Secretary Steve Mnuchin, and National Economic Council Director Gary Cohn.

Oct 13, 2017
FHA Wants Input On Smaller-Balance Mortgages

Agency seeks industry input as a starting point to encourage greater origination of small-balance mortgages for FHA insurance.

Regulation and Compliance
Oct 05, 2022
Government Lending Has A Strong Digital Future

Long gone are the days of 300-page files and mail requests

Regulation and Compliance
Oct 03, 2022
Appraisal Business Fears Modernizing And Newcomers

Appraisers also need to mitigate appraisal bias

Regulation and Compliance
Oct 03, 2022
R.I. Mortgage Broker Pleads Guilty To $6M Ponzi Scheme

Decade-long scheme was used to finance a lavish lifestyle.

Regulation and Compliance
Sep 30, 2022
Fannie Mae Names Almodovar Its New CEO

Financial services veteran brings more than 30 years experience and a strong commitment to affordable housing.

Regulation and Compliance
Sep 29, 2022
OCC Fines Sterling Bank & Trust $6M Over Mortgage Fraud

Bank, parent company remain under criminal investigation by Justice Department and SEC.

Regulation and Compliance
Sep 27, 2022