Senate Moving to Extend Mortgage Debt Forgiveness Act

April 2, 2014
American Banker 
mortgage lending news
Senate Finance Committee Chairman Ron Wyden (D-Ore.) on April 1 introduced a tax bill that would renew the Mortgage Debt Forgiveness Relief Act for two years. The provision, which expired Jan. 1, prevents underwater borrowers from being penalized when they engage in a short sale or when mortgage debt is cancelled as part of a loan modification.

Industry and consumer groups had sought an extension that would be retroactive to Jan. 1. "Congress' failure to extend mortgage debt forgiveness last year has created a situation where the federal government is now spending money on programs to prevent foreclosures, while threatening to tax the very homeowners they are trying to help," according to a letter signed by 23 industry and other interest groups.

Wyden's tax bill also extends the deduction for mortgage insurance premiums for two years.

Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.