WASHINGTON, D.C. – December 2, 2010 – (RealEstateRama) — Michael D. Berman, CMB, Chairman of the Mortgage Bankers Association, today issued the following statement reacting to the proposal from the co-chairs of the National Commission on Fiscal Responsibility and Reform.
“A rollback of the mortgage interest deduction as proposed by the commission would have a devastating impact on both present and future homeowners in this country. It would immediately stop in its tracks any stabilization we are seeing in the housing market and would effectively increase the cost of homeownership for millions upon millions of people.”
“Further, taxing dividends and capital gains as ordinary income would result in decreased incentives for investment, including commercial real estate, which is critical to providing needed infrastructure improvements that bolster our economy and community tax bases and create jobs throughout our nation.”
“The growing federal deficit is one of the greatest threats to the prosperity of our country’s future generations. We recognize that, and look forward to working toward reasonable solutions to the current deficit crisis. But, in our view, today’s proposal is not a reasonable solution, given the fragile state of our economy and, in particular, housing markets and commercial real estate.”
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org.
John Mechem (202) 557-2924