Rep. Julia Brownley (D-CA) has introduced a pair of bills she maintains would make homeownership more affordable for the nation’s working families.
Officials noted Brownley recently detailed the Mortgage Insurance Tax Deduction Act and the Mortgage Debt Forgiveness Act.
“Homeownership is one of the best ways Americans can build personal wealth and save for a secure retirement,” Brownley said. “Homeowners are also able to tap into home equity to help pay for emergencies, like unexpected medical bills or prolonged unemployment.”
The Mortgage Insurance Tax Deduction Act would enable a permanent deduction for mortgage insurance premiums, per the legislation, adding the federal tax code provision would make it more affordable for working families to purchase a home when they do not have the necessary 20 percent down payment.
Congress enacted legislation in 2007 allowing taxpayers to exclude income from the discharge of debt on their principal residence, officials noted, indicating qualifying debt includes debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure.
Mortgage Debt Forgiveness Act proponents noted the bill would make the 2007 provision permanent law.
“Reducing the cost of debt relief, when a family is already struggling, will help middle-class families be able to keep their home at a time when they need help the most,” Brownley said.