On Tuesday the U.S. House passed three bills that will have a big impact on the real estate industry. The Senate has passed all three and President Bush is expected to sign them.
The bills are:
The Mortgage Forgiveness Debt Relief Act of 2007 – This legislation waives taxes by creating a three-year exception for borrowers whose mortgages are modified, with a portion of their debt forgiven, to avoid foreclosure or other financial distress.
Mortgage Insurance Tax Detectability – This bill makes mortgage insurance premiums tax deductible for all mortgages originated for the next three years. Mortgage insurer Genworth Financial estimates what this tax break is worth $350 to the average taxpayer who has repurchased a home with less than 20 percent down.
Terrorism Risk Insurance Act – Federal backstops for terrorism insurance, passed initially after the Sept. 11 attacks, have been extended for another seven years. The bill also expands the program’s protection by including domestic terrorism. The insurance and real estate industries have pushed for an extension, saying federal guarantees to help cover catastrophic losses are crucial to stimulating the investment needed to spur economic growth.
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