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Lending

MBA CEO resquawks about the mortgage interest tax deduction

March 22, 2013

CEO of the Mortgage Bankers Association David Stevens appeared live on CNBC Squawk Box Friday morning.

The video was geared to inform viewers about the housing market make-up this spring.

However, at the latter end of the 4 minute video the reporter nonchalantly asks Stevens, "Can we get rid of mortgage deductibility? Will you sign off on that?"

Interestingly enough, Stevens starts answering the question by saying, "We have a $17 trillion deficit. We're spending a trillion more than we take in every year - Everything has to be on the table."

Last Tuesday, I interviewed David Stevens about the same issue, and he responded similarly and added more clarity on his CNBC soundbite: "I assume that mortgage interest deduction as a significant tax benefit to Americans will likely be on the table just like social programs and other tax structures."

Stevens ended his interview on CNBC by saying, "One thing I would suggest is that there are tipping points to everything. In the middle class segment, people between $100,000 to $250,000 in home purchase price, mortgage interest makes sense to the middle class borrowers."

He added, "The question is do they count that when they are looking to buy a home versus rent. Do people stopping buying altogether? If it has an impact, how does that impact construction? It has to be on the table. It has to be something we take in context with the broader picture."

That's a picture both the mortgage interest tax deduction, and Stevens, will keeping bringing into focus.

 

 

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