Thursday, October 13th, 2011On October 6, 2011, the Senate Finance Committee held another in a series of hearings on tax reform, this time focusing on housing incentives. Five witnesses testified from a variety of perspectives, but they were unanimous on one point: Now is not the time to make any changes to the mortgage interest deduction (MID). [...]
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 October 10, 2011 Dear REALTORS®, Important news on the housing policy front. Despite efforts by C.A.R. and NAR to fight for an extension of Fannie Mae, Freddie Mac, and FHA conforming loan limits, Congress failed to extend the $729,750 loan limits and allowed them to expire Sept. 30. This means the maximum loan amount that Fannie, Freddie, and FHA will buy or guarantee is $625,500, and anything above that amount will be non-conforming and will require a jumbo loan. These loans typically carry a higher mortgage interest rate and require a higher down payment, increasing the monthly payment, which will particularly be hard on middle-class buyers and sellers. However, I’d like to applaud Rep. Gary Miller (R-Calif.) and Brad Sherman (D-Calif.) for jointly introducing a bill that would have made the current loan limits permanent, and Congressman John Campbell (R-Calif.), who introduced a bill that would have extended the current loan limits. And of course, California Senator Dianne Feinstein, who introduced a bill in the Senate that would have extended the conforming loan limits. C.A.R. and NAR will continue to work with Congress to attempt to restore the higher limits as quickly as possible. Continue reading: C.A.R. Monthly Message from President Beth L. Peerce Throughout 2010, NAR made significant progress educating Congress and the Obama Administration that a stable and sustainable housing market is the primary building block for any economic recovery. NAR had a series of successes in the regulatory and legislative fields, some of which are highlighted below. As we look ahead to 2011, NAR will [...] Dear C.A.R. Member, It’s hard to believe this year is soon coming to a close. We’ve accomplished a lot over the past year, but we still have much to do in 2011. For instance, we know we will have to defend changes to the mortgage interest deduction (MID). In late November, President Obama’s Deficit Reduction Commission released its preliminary recommendations, and one of the provisions called for dramatically limiting the MID. Since then, the commission failed to win enough votes to approve the recommendations. However, it is very likely that legislation will be introduced next year to curtail the MID. Few issues are more important to homeownership than the mortgage interest deduction, and while the housing market continues to recover, any change that reduces the ability of the market to heal is misguided and must be rejected. I want to thank everyone who responded to NAR’s Call for Action and urged their member of Congress to preserve the MID. Last week, NAR issued a new Call for Action asking all REALTORS® to call their state senators and ask them to defend the MID. I urge you to contact Sens. Dianne Feinstein and Barbara Boxer to voice your concerns today about limiting the MID. In my first message to you last month, I mentioned that one of my goals this year as C.A.R. President is to help you, the REALTOR®, earn a living. I know many of us have been having a very difficult time working with lenders on short sales. Please be assured that C.A.R. has been working on several fronts to help you more easily deal with short sales and distressed properties. Continue reading: December Message from C.A.R. President Beth L. Peerce Dear C.A.R. member: I’m sure you have heard about the White House’s proposal for reducing the federal budget deficit and the proposed changes to the mortgage interest deduction included within it. Few issues are more important to homeownership than the mortgage interest deduction (MID). As the housing market continues to recover from the worst financial crisis in recent history, any change that reduces the ability of the market to heal is misguided and must be rejected. I want you to know that C.A.R. strongly opposes any changes that would modify or reduce the mortgage interest deduction. The deductibility of interest paid on mortgages is a powerful incentive for home ownership and has been one of the simplest provisions in the federal tax code for more than 80 years. The proposal from the Deficit Reduction Commission will negatively impact the housing market, further erode opportunities for homeownership across the country, and will contribute to further price declines and diminished equity for homeowners by as much as 15 percent. C.A.R. and NAR will remain vigilant in opposing any plan that modifies or excludes the deductibility of mortgage interest and make certain that the real estate industry’s opposition to this proposal is heard and its far-reaching implications understood. Continue reading: C.A.R. Opposes Proposed Changes to Mortgage Interest Deduction  The Mortgage Interest Deduction (MID) is vital to both home ownership and our economy. I’m disappointed that anyone in Congress — or on a Presidential Commission — would even suggest limits to the Mortgage Interest Deduction. Mortgage interest has been deductible for nearly 100 years, and the proposed changes will affect all 75 million home owners in the United States. We must act now to make sure the MID is not changed. Ever since the Deficit Commission announced its conclusions, the news media have been buzzing about the report. And what do they emphasize? Proposals to limit or even eliminate the Mortgage Interest Deduction. I’m concerned because all this does is scare the public — and potential buyers — away from the housing market. The last thing the housing industry needs right now (and for the foreseeable future) is another bucket of ice water to be thrown on the market. People who hear these news reports don’t differentiate between a proposal and a done deal. They just know that a tax provision they actually understand and rely on is under siege. This is just unacceptable. I am asking you to call to your representative’s office today to ask him or her to defend the Mortgage Interest Deduction from any cuts or reduction as outlined in the Deficit Commission Report. This Call for Action requires you to do something a little different. In order to track the calls we are making to Congress, we need you to follow the link and enter your phone number and zip code to be connected to your representative’s office. You can make this call now, or later today at a more convenient time. But we need you to make this call. Continue reading: Call for Action: Protect Home Ownership. Defend MID. On February 1, President Obama released his budget proposal for 2011. Consistent with its proposed FY 2010 budget, the Administration’s again has recommended limiting the value of the mortgage interest deduction (MID) for upper income taxpayers by, in effect, converting the deduction to a 28% tax credit for those individuals currently in the 33% [...] |
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