Author: Karl Howley

Statement: The Introduction of The Middle Class Mortgage Insurance Premium Act of 2023

Posted on by Karl Howley

WASHINGTON—Seth Appleton, President of U.S. Mortgage Insurers (USMI), released the following statement on the introduction of The Middle-Class Mortgage Insurance (MI) Premium Act of 2023 sponsored by Representatives Vern Buchanan (R-FL) and Jimmy Panetta (D-CA):

“We are grateful to Representatives Buchanan and Panetta for their continued leadership on this critical legislation that would make permanent the ability of middle-class homeowners to deduct private and government MI premiums on their individual federal income tax returns, importantly restoring parity with the deductibility of mortgage interest. Since 2007, millions of homeowners have been able to claim the MI tax deduction, allowing them to save more of their hard-earned dollars. The MI tax deduction has long enjoyed bipartisan, industry, and consumer advocate support. We urge swift passage by the House and Senate.

“As affordability remains a persistent barrier to homeownership across the country, particularly for first-time homebuyers, the need for this legislation is even more urgent today than when the deduction was first enacted. Low down payment mortgages, including conventional loans with private MI, have proven critical for millions of low- and moderate-income, first-time, and minority borrowers to sustainably buy a home sooner, secure financial stability, and build intergenerational wealth.”

Borrower-paid MI premiums became tax deductible in 2007, but the deduction expired after tax year 2021. Last November, USMI joined a coalition of housing organizations in sending a letter to the House Ways and Means Committee and Senate Finance Committee urging members to make the MI premium tax deduction permanent and increase its income phaseout. Data through tax year 2020 shows that an average of 3.3 million homeowners have claimed the deduction annually and received an average deduction of $1,427. In aggregate, homeowners claimed more than $61 billion in MI premium deductions between 2007 and 2020.

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U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org.

Letter: Statement to Senate Finance Committee Hearing, “The Role of Tax Incentives in Affordable Housing”

Posted on by Karl Howley

USMI submitted a statement for the record to the U.S. Senate Committee on Finance for its July 20 hearing, “The Role of Tax Incentives in Affordable Housing.” USMI writes “that there are tax policies that can be improved in order to help American family achieve the American Dream of homeownership. More specifically, we strongly support S. 3590, the Middle Class Mortgage Insurance Premium Act of 2022, a bipartisan bill introduced by Senators Maggie Hassan and Roy Blunt.” See here for the full letter.

Statement: FHFA’s Release of Fannie Mae and Freddie Mac’s “Equitable Housing Finance Plans for 2022-2024”

Posted on by Karl Howley

WASHINGTON — Adolfo Marzol, Chairman of U.S. Mortgage Insurers (USMI), today issued the following statement on the Federal Housing Finance Agency’s (FHFA) public release of Fannie Mae and Freddie Mac’s “Equitable Housing Finance Plans for 2022-2024,” which outline the government-sponsored enterprises’ (GSEs) proposed actions over the next three years to advance equity in housing finance.

“USMI commends the commitment considered in the GSEs’ Equitable Housing Finance Plans toward sustainable approaches that will meaningfully address racial and ethnic disparities in the housing finance system. Our members support efforts to remove barriers to homeownership, increase access and affordability, and promote sustainable homeownership for minority homebuyers. For 65 years, private mortgage insurance has provided access to mortgage financing for millions of borrowers, while also protecting American taxpayers from mortgage credit risk. As an industry focused on serving low down payment homebuyers, we look forward to continued collaboration with FHFA, the GSEs, and other industry stakeholders to advance policies that promote responsible access to equitable and sustainable homeownership while also supporting the GSEs’ safety and soundness.

“As the GSEs develop and implement programs and pilots to promote equitable access to affordable and sustainable housing, it is paramount that they carefully balance access to credit with policies that prudently manage risk to the GSEs. USMI welcomes the FHFA’s creation of the pilot transparency framework and supports increased oversight and accountability of pilots launched in furtherance of the GSEs’ Equitable Housing Finance Plans.”

Since 1957, the private MI industry has exclusively served low down payment borrowers and made sustainable homeownership available for more than 37 million borrowers. On October 25, 2021, USMI submitted a comment letter in response to the FHFA’s Request for Input (RFI) on the “Enterprise Equitable Housing Finance Plans,” detailing actions the GSEs should consider to promote sustainable homeownership and level the playing field for underserved homebuyers.

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U.S. Mortgage Insurers (USMI) is dedicated to a housing finance system backed by private capital that enables access to housing finance for borrowers while protecting taxpayers. Mortgage insurance offers an effective way to make mortgage credit available to more people. USMI is ready to help build the future of homeownership. Learn more at www.usmi.org.