Mortgage News of the Week

Here's the Kansas City area mortgage news from Carol Poppe


Carol Poppe, Vice President Mortgage
Ph 913-652-7302 cell 913-707-1153
www.fcbloan.com/CLPoppe

MORTGAGE NEWS FOR THE WEEK OF 09/27/2007

UPDATE ON MORTGAGE INSURANCE TAX DEDUCTIBILITY:

A House of Representative panel has met recently to enact a bill that will help ease problems in the housing crunch. Top on their list was changing the law that taxed homeowners on the amount of forgiven debt by lenders. As the law stands, homeowners who short sell their home back to their lender to avoid foreclosure get taxed on the forgiven debt because they treat it as income. The legislation was approved to change this rule.

The big news is that the committee proposed legislation to extend income tax deduction for private mortgage insurance. A temporary one is in place but is expiring December 31, 2007. The new legislation will extend this through December 31, 2014.

The new bill is backed by The National Association of Home Builders, the Mortgage Bankers Association, and the National Association of Realtors.

This new bill will be presented to the House of Representatives for a full House vote after the House Ways and Means Committee approved the bill by voice vote.