House introduces bill to reduce mortgage insurance premiums

Trade organizations such as the Mortgage Bankers Association (MBA) might soon see progress in their efforts to address mortgage insurance premiums. Recently, Rep. Vern Buchanan (R-Fla.) introduced H.R. 2760, also known as the Middle Class Mortgage Insurance Premium Act, in the House of Representatives. The bill, supported by 10 co-sponsors from both parties, aims to adjust the income cap for mortgage insurance premium deductions within the Internal Revenue Code of 1986.

The legislation, now under review by the House Committee on Ways and Means, seeks to provide tax relief to middle-class families striving for homeownership. Buchanan, the bill’s sponsor and vice chairman of the ways and means committee, emphasized the importance of supporting Americans in achieving the dream of owning a home, especially amid rising housing costs.

Co-sponsor Jimmy Panetta (D-Calif) highlighted the financial challenges posed by mortgage insurance costs, emphasizing the bill’s role in ensuring middle-class homeowners can benefit from the deduction. The Mortgage Bankers Association has been actively advocating for reduced mortgage insurance premiums, particularly for Federal Housing Administration (FHA) loans.

The Trump administration’s call for emergency price relief in the housing sector has prompted trade organizations like the MBA to renew their efforts in seeking premium reductions. MBA President and CEO Bob Broeksmit anticipates regulatory easing under the new administration, potentially leading to reduced costs in the home loan process, particularly concerning FHA loans.

U.S. Mortgage Insurers (USMI) President Seth Appleton expressed strong support for H.R. 2760, describing it as a necessary measure to reinstate, make permanent, and expand eligibility for the mortgage insurance premium tax deduction. Appleton emphasized the importance of this deduction in making homeownership more affordable for American families, noting its significant impact on taxpayers in previous years.