Robbins Praises House Ways and Means Approval of Deductibility for Mortgage Insurance and Forgiven Debt

John M. Robbins, CMB, Chairman of the Mortgage Bankers Association (MBA) applauded today`s approval by the House Ways and Means Committee of legislation to extend the deductibility for mortgage insurance premiums for seven more years and to exclude discharges of debt on primary residences from gross income.  H.R. 3648 passed the committee by voice vote. 

Robbins issued the following statement.

"The deduction for mortgage insurance premiums will provide significant benefits for prospective homebuyers.  Making mortgage insurance - including FHA premiums and RHA and VA guarantee fees - deductible will encourage more use of these important programs and tools and will lower the real cost of homeownership.

Allowing the exclusion of forgiven mortgage debt from gross income calculations will stop the unfortunate outcome of taxing phantom income for distressed borrowers, thus removing a penalty for consumers seeking this help from their mortgage lenders.

We look forward to working with legislators in the House and Senate to keep the momentum behind these initiatives."     

CONTACT:        John Mechem   202) 557-2924   jmechem@mortgagebankers.org