The Bill to Increase Mortgage Insurance Premium Deduction
The House Committee on Ways and Means has received a bill that aims to increase the income cap for and make permanent the mortgage insurance premium deduction. While the full text of the legislation is not yet available, it is intended to provide tax relief for middle-class families looking to own a home.
In a statement, Congressman Buchanan emphasized the importance of this bipartisan legislation in helping millions of Americans achieve the dream of homeownership amidst rising housing prices. Co-sponsor Jimmy Panetta highlighted the challenges faced by working families in affording mortgage insurance and expressed support for updating the income threshold to benefit more middle-class homeowners.
The Mortgage Bankers Association (MBA) has been advocating for reductions in mortgage insurance premiums, particularly for Federal Housing Administration (FHA) loans. The Trump administration’s executive order on housing affordability has further spurred efforts to lower costs in the housing market, including mortgage insurance premiums.
MBA President and CEO Bob Broeksmit expects the new administration’s deregulatory approach to ease the regulatory burden and reduce origination costs. He also stressed the potential for immediate action to lower FHA loan premiums, benefiting both single-family and multifamily housing.
U.S. Mortgage Insurers (USMI) President Seth Appleton voiced strong support for H.R. 2760, describing it as common-sense legislation that would restore, make permanent, and expand eligibility for the mortgage insurance premium deduction. The expiration of this deduction in 2021 has deprived many taxpayers of valuable savings, making the Middle Class Mortgage Insurance Premium Act a positive step towards affordability and homeownership.