In a move likely to help 100,000 struggling homeowners, the California Legislature recently passed a law that allows Californians to exclude mortgage forgiveness from their income or tax purposes. “California has been particularly hard hit by the housing crisis,” said state controller and Franchise Tax Board chairman John Chiang, in a prepared release. “This is a critical tax change that will help people in our state who already are suffering the loss of their homes.” The law allows taxpayers to exclude canceled mortgage debt on their principal residence of up to $500,000.
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Quicken Loans has become the largest mortgage lender in the country over the last few years due in large part to the growth of Rocket Mortgage, the company’s digital mortgage platform. As it turns out, Rocket Mortgage is becoming so big that it’s now consuming other parts of the Quicken Loans family of companies too, namely the company’s reverse mortgage lender.
For government agencies, the road to a streamlined process is a hard slog through outdated technology, requiring battles with regulators and legislators. But that doesn’t stop them from trying.