Will Mortgage Interest Deduction be Caught in Debt-Ceiling Crossfire?

The Mortgage Interest Deduction could come under debt-deal fire as President Obama and Congress struggle to come to budget terms, according to reports last week.

Capping the MID and eliminating it for second homes and home equity loans is being discussed, according to a report by National Mortgage News that cited “industry officials.”

A change in the MID is part of a deal currently being discussed by the president and Speaker of the House, John Boehner, National Mortgage News reported.

Currently, the mortgage interest deduction is capped, with the ability to write off interest paid on second homes and home equity lines of credit.

With the mortgage industry being strongly against altering the MID, Glen Corso, managing director of the Community Mortgage Banking Project told National Mortgage News that changing it now would damage an already weak housing and lending environment. “Home sales are very slow right now,” he said. “Is this really the time to start talking about doing this?”

Read the article from National Mortgage News.

Written by Elizabeth Ecker

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