There are many proposals and bills floating around Congress these days which could affect current and future homeowners, not only on Long Island but across the country. If these bills pass, the American Dream of Homeownership will be greatly restricted.
PATH – or “Protecting American Taxpayers and Homeowners” – This bill proposes to comprehensively restructure the financial mortgage markets. Do you have a 30-year mortgage? If this bill goes through and Fannie and Freddie are dissolved – and only the private market provides mortgages, the 30-year mortgage will no longer be available. This proposal makes no sense to me because Fannie Mae and Freddie Mac have paid back the entire amount borrowed from the federal government PLUS paid 15 Billion Dollars profit in dividends to the federal budget this year. Why should we give a profit-making government program to the private sector? Who benefits from that? Not the taxpayers. Try selling your home during a downturn in the economy when private capital flees the mortgage market and buyers cannot obtain mortgages.
FHA Changes – For FHA loans the PATH Act proposes lower down payments, regardless of the borrower’s credit worthiness and lowering loan limits which will restrict borrower’s access to credit. This bill completely changes the structure and role of the FHA single-family mortgage insurance program making 345,000 borrowers a year ineligible for FHA financing.
Read more about #PATH in this Coalition Letter against PATH to our representatives from leaders of various groups, including the National Association of Realtors.
MID – Mortgage Interest Deduction – Would losing this tax benefit affect you? It certainly will for many homeowners on #Long Island. This is a topic “near and dear” to most of us. But proposals in Congress limit this deduction to qualified home mortgages up to $500,000 from the current $1 million. Let your senators and representative in Congress know how you, as a taxpayer and a homeowner, feel about this bill. Find representative.