The House Committee on Ways and Means has received a bill aimed at amending the Internal Revenue Code of 1986 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, its purpose is clear – to provide tax relief for middle-class families looking to own a home.
In a statement, Vice Chairman of the ways and means committee, Buchanan, emphasized the importance of helping middle-class families achieve the American Dream of homeownership by introducing bipartisan legislation to increase the housing supply and cut taxes for homeowners.
Co-sponsor Jimmy Panetta highlighted the challenges faced by working families in affording mortgage insurance and expressed support for making the mortgage insurance premium tax deduction permanent 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 association welcomed the Trump administration’s executive order calling for emergency price relief to improve housing supply and affordability.
MBA President and CEO, Bob Broeksmit, believes that the new administration’s deregulatory approach will help lower costs in the origination process and ease the regulatory burden on the housing market.
U.S. Mortgage Insurers (USMI) President Seth Appleton expressed strong support for H.R. 2760, stating that it is common-sense legislation that would restore, make permanent, and expand eligibility for the tax deduction for mortgage insurance premiums. The bill aims to put money back in the pockets of taxpayers and make homeownership more affordable for American families.