Congress is on track to pass a tax bill before the lawmakers adjourn for the year that would allow most first-time homebuyers to deduct the cost of mortgage insurance premiums for the first time ever.Passage of the tax deduction would be a major victory for the private mortgage insurance companies, which have seen their market shrink in recent years as homebuyers opted for piggyback loans (80-10-10s) to avoid paying MI premiums. It also applies to insurance premiums in Federal Housing Administration single-family loans. "If passed, MI tax deductibility will be a positive development for the mortgage [insurers] as it would remove a competitive advantage enjoyed by 80-10-10 loans," a research brief by Friedman Billings Ramsay says. The MI deduction is limited to first-time homebuyers with incomes of less than $110,000. Mortgage industry consultant Howard Glaser noted that the MI deduction would also benefit Fannie Mae and Freddie Mac, since the two secondary-market agencies securitize most of the mortgages with private mortgage insurance.
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The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
1h ago -
The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
2h ago -
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18 -
In a Senate hearing, Director Sandra Thompson said a raise to the required income threshold provided to affordable housing was on the table, while housing regulators also faced questions related to property insurance hikes and title insurance waivers.
April 18 -
The nonpayment rate for non-qualified mortgages is up 21 basis points from February and 134 basis points from March 2023, Morningstar DBRS said.
April 18 -
The government mortgage-bond guarantor will require additional information on foreclosure prevention actions, and retire some forbearance reporting.
April 18