has called on its membership to lobby the U.S. Senate into rejecting the Republican tax reform bill in its current state.
In a letter to the organization’s members, NAMB President John G. Stevens argued that the legislation “will cause an immediate negative impact on consumers wishing to purchase a home.” Stevens argued that the bill’s provision excluding the deduction for state and local taxes in favor of doubling the standard deduction would negatively homeowners.
“Consumers do not merely purchase a house, they purchase a place they seek to make their community,” Stevens wrote. “Doubling of the standard deduction takes away any incentive to purchase a home and make a community connection. Doubling the standard deduction, in lieu of the mortgage interest deduction, dis-incentivizes homeownership.”
Stevens also opposed Section 13221 of the tax bill, which requires that any item of income that an accrual taxpayer recognizes for accounting purposes must also be recognized for tax purposes. Stevens stated this will impacts mortgage service right and place small independent lenders at a major disadvantage because the “would have to borrow money to pay for taxes on income they have not yet received. This would force them out of this sector of the mortgage business or require them to find a funding source or borrow to pay the tax. Either method would increase the costs of their mortgage operations and translate to increase costs to borrowers.”