In the News
Presented by Prairie
Title April 4, 2014
Commentary
by Frank Pellegrini,
Prairie
Title CEO
It is widely accepted that a healthy housing sector is
fundamental to the well-being of our economy. As such, it is not surprising
that full recovery from the Great Recession hinges in great part on the
strength of the housing market.
We’re watching some notable stories on that
aspect of the recovery. These include discussions over the continued
deductibility of home mortgage interest in plans to reform the tax code and the
fate of Fannie Mae and Freddie Mac.
Of course, every issue has at least two sides. The argument
over the mortgage interest deduction is no different. Compelling arguments are
being asserted to keep it as is, limit it, or do away with it. Some experts
insist that without the deduction home ownership would cease to be desirable, and
others assure us that its impact on the overall decision to purchase a home is
negligible. Some believe the deduction only benefits the wealthy, others try to
convince us that the middle class would be deeply harmed without it. To see pros
and cons you may be interested in this March piece in
the Wall Street Journal.
A
recent proposal offered by Senators Tim Johnson and Mike Crapo
would create a new agency and would restructure the way mortgage loans are
transacted on the secondary market. Since a vibrant and fluid environment for
mortgage securitization is essential to the health of housing, this and other
similar proposals require close scrutiny. View the current proposals side by
side here.
Questions or comments? Call me at 708-386-7900, or
send me an email: frank@prairietitle.com.
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