As Tax Deadline Day approaches, many people will be looking to get the best tax return they can by itemizing their deductions, detailing what some of their mortgage expenses were in the past year. There have been rumors swirling in Washington, however, that in attempt to reduce the federal deficit, lawmakers may tinker with the mortgage interest rate deduction.
But several real estate organizations are against these reforms if they in anyway hurt the average consumer. One of these detractors is the American Society of Home Inspectors.
Home inspection business representative ASHI spoke out about the mortgage interest deduction late last year, citing it as a crucial savings instrument that homeowners have come to rely on. In fact, in 2009 nearly 37 million taxpayers claimed this deduction, saving them an an estimated $420 billion overall.
Marvin Goldstein, president of the ASHI, indicated that decreasing the value of the HMID would be imprudent, a move that would sabotage hard-working Americans' efforts while at the same contributing to the negative aspects of the economy.
"Along with our colleagues throughout the real estate industry, ASHI calls on policy-makers to fully protect and uphold the home mortgage interest rate deduction," said Goldstein. "It is an institutionalized factor in the market and any change to it would have a widespread negative impact on the economy."
NAHB: Accessibility to affordable home loans crucial
While ASHI made this appeal this past December, several other housing organizations have spoken on behalf of the American homeowner more recently, ensuring that their interests are upheld. This includes the National Association of Home Builders.
Testifying before the House Financial Services Subcommittee on Housing and Insurance, NAHB vice chairman Kevin Kelly noted that the consumer has to be protected if the government intends to reform the Federal Housing Administration's structure.
"While there is no doubt that the housing finance system needs to be reformed, the contributions that the FHA made during the economic downturn underscore the need for a government backstop for both the primary and secondary mortgage markets," said Kelly. "In times of crisis, private sources of mortgage credit have been unable or unwilling to meet housing capital needs."
He added that the government should continue to ensure that the real estate industry remains a bright spot in the country's economic picture by supporting efforts toward maintaining their accessibility to low-cost mortgages.