Mortgage Deduction in Crosshairs Again

Inman News (02/02/10)

The White House wants to reduce how much wealthy households can lower their tax bills on itemized deductions for mortgage interest payments and other writeoffs from 39.6 percent to 28 percent, as a way to raise $291 billion over the next decade. The Mortgage Bankers Association, however, warns that the move would increase the cost of loans for potential buyers and hurt the housing market. It is pleased, however, with the Obama administration's proposed rise in funding to improve risk management systems at the FHA and in the level of spending to help HUD limit predatory lending and mortgage fraud.