Comments on: Differences in policy on mortgage crisis proposals http://www.ronamundson.com/blog/2008/02/14/differences-in-policy-on-mortgage-crisis-proposals/ an ex-Republicans View of the World, and his campaign efforts Thu, 04 Mar 2010 22:57:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: crownlilo http://www.ronamundson.com/blog/2008/02/14/differences-in-policy-on-mortgage-crisis-proposals/comment-page-1/#comment-1051 crownlilo Mon, 01 Dec 2008 10:49:26 +0000 http://www.ronamundson.com/blog/2008/02/14/differences-in-policy-on-mortgage-crisis-proposals/#comment-1051 Looks very very interesting!<br>Thanks for letting us know about it.this why i love internet the power of sharing .I am in love with your blog <br>My best regards,<br><br><br><a href="http://thenewsempire.com/Worlds%20and%20Business/World%20News/Mortgage-approvals-still-falling/" title="Mortgage approvals still falling" rel="nofollow">Mortgage approvals still falling</a> Looks very very interesting!
Thanks for letting us know about it.this why i love internet the power of sharing .I am in love with your blog
My best regards,

Mortgage approvals still falling

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]]> By: Minnesota Central http://www.ronamundson.com/blog/2008/02/14/differences-in-policy-on-mortgage-crisis-proposals/comment-page-1/#comment-2 Minnesota Central Mon, 18 Feb 2008 13:55:01 +0000 http://www.ronamundson.com/blog/2008/02/14/differences-in-policy-on-mortgage-crisis-proposals/#comment-2 The mortgage crisis has more impacts than what is being discussed. Did you hear Pawlenty discuss this issue during his State of the State address last Wednesday ? Me either. Increasing property taxes are a major burden on residents yet he announced a Corporate Tax Reform Commission that will recommend changes for corporate income tax. (As an aside, he’s appointing business people to tell us how much less business should have to pay … sounds like Dick Cheney’s Energy Commission.) Businesses are impacted by property taxes as well as homeowners. If mortgages going into default, property taxes will be deliquent. Where’s Coleman on this ? He’s always touting his experience as a Mayor … well, he must have read the <a href="http://64.233.169.104/search?q=cache:jfQ_nf1X8MgJ:www.usmayors.org/uscm/news/press_releases/documents/mortgagereport_112707.pdf+usmayors+Mortgage+Foreclosure+Crisis+2008&hl=en&ct=clnk&cd=1&gl=us&ie=UTF-8" rel="nofollow"> US Mayors Report </a>. That stated, The Mortgage Debt Relief Forgiveness Act of 2007 was bad legislation … helping out the rich more than those that truly needed it. Bush created a President’s Advisory Panel on Federal Tax Reform which recommended “lowering the mortgage-interest cap, which is the amount of a loan on which homeowners would receive a tax break for interest paid, from $1 million to the average regional housing price in the range of $227,000 to $412,000. Would Congress follow the panel’s recommendations ? No. The Mortgage Debt Relief Forgiveness Act of 2007 now is based on a principal residence up to $2 million. As this <a href="http://www.nhi.org/online/issues/144/mansionsubsidy.html" rel="nofollow"> commentary </a> clearly states : “Wealthy households are most likely to own homes and to itemize deductions. Half of all homeowners do not claim deductions at all. Tenants, of course, don’t even qualify. As a result, 62 percent of households with incomes above $200,000 receive a mortgage interest tax break, averaging $7,219. In contrast, only 3.5 percent of households with incomes between $10,000 and $20,000 receive any subsidy, averaging $317. If anything, these tax deductions help push up housing prices artificially, especially at the upper end, because homebuyers include the value of the tax subsidy in their purchase decision. This leads wealthy homeowners to buy bigger houses than they would without the tax breaks. We have created a real mess that may take awhile to remedy … but I agree that Obama offers a better plan. FYI – Keith Ellison is a co-sponsor of H.R.3609 Emergency Home Ownership and Mortgage Equity Protection Act of 2007 which has some merits. The legislation is designed to prevent up to 600,000 Americans from losing their homes in bankruptcy over the next two years -- by giving bankruptcy judges the ability to revise mortgage contracts on primary mortgages, much as they already do when sorting out payments to other kinds of creditors and other mortgages, such as vacation homes. This bill will permit bankruptcy courts to give homeowners more time to pay their mortgages with more reasonable interest rates. The mortgage crisis has more impacts than what is being discussed.
Did you hear Pawlenty discuss this issue during his State of the State address last Wednesday ? Me either. Increasing property taxes are a major burden on residents yet he announced a Corporate Tax Reform Commission that will recommend changes for corporate income tax. (As an aside, he’s appointing business people to tell us how much less business should have to pay … sounds like Dick Cheney’s Energy Commission.) Businesses are impacted by property taxes as well as homeowners. If mortgages going into default, property taxes will be deliquent.
Where’s Coleman on this ? He’s always touting his experience as a Mayor … well, he must have read the US Mayors Report .

That stated, The Mortgage Debt Relief Forgiveness Act of 2007 was bad legislation … helping out the rich more than those that truly needed it. Bush created a President’s Advisory Panel on Federal Tax Reform which recommended “lowering the mortgage-interest cap, which is the amount of a loan on which homeowners would receive a tax break for interest paid, from $1 million to the average regional housing price in the range of $227,000 to $412,000.

Would Congress follow the panel’s recommendations ?

No. The Mortgage Debt Relief Forgiveness Act of 2007 now is based on a principal residence up to $2 million.

As this commentary clearly states : “Wealthy households are most likely to own homes and to itemize deductions. Half of all homeowners do not claim deductions at all. Tenants, of course, don’t even qualify. As a result, 62 percent of households with incomes above $200,000 receive a mortgage interest tax break, averaging $7,219. In contrast, only 3.5 percent of households with incomes between $10,000 and $20,000 receive any subsidy, averaging $317. If anything, these tax deductions help push up housing prices artificially, especially at the upper end, because homebuyers include the value of the tax subsidy in their purchase decision. This leads wealthy homeowners to buy bigger houses than they would without the tax breaks.

We have created a real mess that may take awhile to remedy … but I agree that Obama offers a better plan.

FYI – Keith Ellison is a co-sponsor of H.R.3609 Emergency Home Ownership and Mortgage Equity Protection Act of 2007 which has some merits. The legislation is designed to prevent up to 600,000 Americans from losing their homes in bankruptcy over the next two years — by giving bankruptcy judges the ability to revise mortgage contracts on primary mortgages, much as they already do when sorting out payments to other kinds of creditors and other mortgages, such as vacation homes. This bill will permit bankruptcy courts to give homeowners more time to pay their mortgages with more reasonable interest rates.

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