Industry News

Congress backs mortgage insurance tax deduction

Legislation would help borrowers earning less than $100,000 annually

A bipartisan majority of the U.S. House of Representatives has agreed to co-sponsor a key tax provision already passed by the U.S. Senate that would give a much-needed financial boost to millions of current and future homeowners. The Mortgage Insurance Fairness Act (H.R. 1336), introduced by Rep. Paul Ryan (R-Wis.) and Rep. William Jefferson (D-La.), would make private and government mortgage insurance tax deductible and save consumers hundreds of dollars annually by allowing a write-off of monthly mortgage insurance premiums. The deduction is limited to individuals and families earning less than $100,000 per year and is part of an omnibus tax bill passed by the Senate in May. To date, 220 members of the House of Representatives from both sides of the aisle have co-sponsored the deductibility legislation. "This bill, if passed, will go a long way to help homeowners and potential homeowners who simply want to own a piece of the American dream," said Marc H. Morial, president and chie...