WASHINGTON, D.C. (November 29, 2017) – (RealEstateRama) — David H. Stevens, President and CEO of the Mortgage Bankers Association, released the following statement regarding a provision (Section 13221 ) in the Senate Tax Reform Bill that would require any item of income that an accrual taxpayer recognizes for accounting purposes, including mortgage servicing rights, also be recognized for tax purposes:
“This provision would have severe, unintended consequences resulting in higher costs for borrowers and diminished access to credit, caused when servicers of all shapes and sizes are forced to exit the business because they can’t, or won’t, operate under this new rule. It would also negatively impact trillions of dollars of mortgage servicing rights held by small community banks, non-bank lenders, regional and large banks, and commercial and multifamily lenders. MBA calls on members of the Senate to address this provision without further delay, before the bill gets to the Senate floor.”
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